JUDGMENT

Abdul Malik Ishak J

The appellants owned a building known as Tun Abdul Razak Complex and rented out an area of approximately 4,696 sq ft on the second floor of the said building, at the podium level to the respondents ('demised premises') for a period of five years commencing from 15 May 1977 at monthly rentals calculated on the following basis:

(i) first year at RM5,525 per month;

(ii) second year at RM5,850 per month;

(iii) third year at RM6,175 per month; and

(iv) remaining two years at RM6,500 per month.

The tenancy agreement (exh P1) was scheduled to end on 14 May 1982 but somehow it was extended (though there was no evidence adduced towards this end) and finally the parties mutually consented to terminate the tenancy agreement on 31 March 1986 as reflected in the statement of claim of the respondents and the appellants had agreed to these set of facts in their statement of defence. Indeed, these were the evidences that were introduced before the magistrate's court, Johor Bahru. The trial before the magistrate's court, Johor Bahru was surprisingly conducted by a judge of the sessions court, Johor Bahru ('trial court').

It was in evidence that when the respondents rent