JUDGMENTBY: JEMURI SERJAN (BORNEO) CJ (DELIVERING THE GROUNDS OF JUDGMENT OF THE COURT)

At the hearing of this appeal on 18 May 1993, we allowed the appeal with costs here and below and ordered the deposit to be refunded to the appellant, and indicated that we would give our reasons later. These are the grounds of our judgment.

In this case, the first and second defendants/respondents (the defendants), Jong Tze Khiok @ Yong Tze Kiok @ Jong Tsz Khiok and Yong Ng Fah, the registered proprietors of the land described as Lot 535, Block 9, Miri Concession Land District, charged the said land as security for banking facilities granted by Citibank NA, the plaintiff/appellant (the plaintiff), at the request of the defendants, to Yong Tze Kiok Co Sdn Bhd (the customer), up to an aggregate total amount not exceeding B$ 2m only (the principal sum). According to the terms of the charge, the defendants promised to pay the principal sum upon, and only upon, demand, and similarly, the balance, which at the date of such demand was still owing to the plaintiff by the customer, together with interest at the rate of 2% above the prime rate, was also to be paid upon, and only upon, demand.

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