JUDGMENT

Abdul Hamid Mohamad FCJ (dissenting):

To appreciate what had transpired in this case, it is important that the chronology of events be given.

On 27 July 1982, the first charge was created.

On 28 October 1983, the second charge was created.

On 29 November 1986, the appellant issued a letter of demand to the respondent (chargor) demanding payment within seven days of the "outstanding sum of M$47,884,178.68 as at 26 November 1986 together with interest thereon at the aforesaid rate from 27 November 1986 to date of full settlement."

On 6 December 1986, Form 16D was issued, reciting the breach as follows:

Whereas you have committed a breach of the provisions of these charges by defaulting in payment on demand made by us through our solicitors puRs uant to their letter dated November 29 1986 of the sum of M$47,884,178.68 due to us and outstanding as at November 26 1986 on your overdraft of M$10,000,000.00 and two (2) Bank Guarantee facilities of the principal sums of US$6,000,000 and M$14,000,000.00 respectively together with interest thereof at a rate per annum which is 6% above our Base Lending Rate of 10.3% per annum on monthly rests basis from November 27 1986 till date of f