Gopal Sri Ram JCA:

(1) (delivering judgment of the court):

(2) 1 This is the judgment of the court.

(3) 2 The Co-Operative Central Bank Ltd (‘CCB’) is not a bank at all. It is a co-operative society registered and governed by the provisions of the Co-Operative Societies Act 1948. We are advised by counsel that it is still in existence. In 1987, CCB got into financial difficulties. According to the affidavit evidence placed before us at p 689 of the record of appeal in Appeal No W–02–567 of 1999, the excess of liabilities over assets amounted to almost RM650m. It was hopelessly insolvent. It had taken deposits from members of the public. There was a grave danger that innocent depositors would lose their monies. So the government acted.

(4) 3 It got Bank Negara Malaysia (‘BNM’) to move under the Essential (Protection of Depositors) Regulations 1986. On 7 January 1988, BNM exercised powers under those regulations and appointed two persons to assume control and carry on the business of CCB. On 7 March 1989, BNM applied to the High Court in Kuala Lumpur and obtained the appointment of Tuan Haji Zainal Abidin Putih and Tuan Haji Ahmad Kamal bin Abdullah Al-Yafii as the rec