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Malayan Law Journal Reports/1980/Volume 2/CHAI YE ! "A# $% AMERICA A&I$AL &R'(& )
(AVI*( A(($CIA&I$ + ,1980- 2 MLJ 1.2 + 2/ Apr0l 1980
1 pa1e
,1980] 2 MLJ 142
CHAI YEN v BANK OF AMERICA NATIONAL TRUST & SAVINGS ASSOCIATION
FC KUALA LUMPUR
RAJA ALAN SHAH CJ !MALAYA"# CHANG MIN TAT & SYE$ OTHMAN FJJ
FE$ERAL COURT CIVIL APPEAL NO 14% OF 19&'
4 MARCH 1980# 2% A()*+ 1980
Practice and Procedure -- Appeal -- Application for introduction of fresh evidence -- Evidence could have
been obtained at trial -- Evidence irrelevant to action -- Application refused
In t20s 3ase t2e appl03ant 2a4 e5e3ute4 two 32ar1es o!er 2er lan4s 0n 6a!our o6 t2e respon4ent7 to se3ure an
o!er4ra6t a33ount w0t2 t2e respon4ent8 92en 4eman4 6or repayment o6 t2e sum 4ate met w0t2 no response7
t2e respon4ent 3ommen3e4 6ore3losure pro3ee40n1s a1a0nst t2e appellant an4 an or4er 6or sale was ma4e8
At t2e appeal t2e appellant appl0e4 6or an or4er 6or t2e respon4ent to pro4u3e :e6ore t2e 2ear0n1 o6 t2e
appeal7 a 3ont0nu0n1 1uarantee e5e3ute4 :y t2e appellant8
H,+-. t2e appl03at0on was 6or t2e 0ntro4u3t0on o6 6res2 e!04en3e an4 s2oul4 :e re6use4 as
1a) 0t was not s2own t2at t2e e!04en3e 3oul4 not 2a!e :een o:ta0ne4 w0t2 reasona:le 40l01en3e 6or
use at t2e tr0al an4
1b) t2e 4o3ument 0n ;uest0on 2a4 no rele!an3e to t2e or4er o6 sale o6 t2e lan4s se3ure4 :y t2e
32ar1es8
C/0,0 ),1,)),- 23
Ladd v Marshall ,19<.- 1 9LR 1.89
Skone v Skone & Anor ,19=1- 1 9LR 812
Leng Lan v SM Yesudian ,19/9- MLJ 222> ,19/8- %M(LR ??
Shaik Sahied bin Abdullah Bajarie v AA Mootoo !arpen !hitt" @1910A 2 MC 1?
Lau #oo Sun v $ovt of Mala"sia ,19=0- 2 MLJ =0
FE$ERAL COURT

$% ajan 6or t2e appellant8
& %ha"alan 6or t2e respon4ent8
CHANG MIN TAT FJ
@4el0!er0n1 t2e Bu41ment o6 t2e CourtAC 9e re6use4 t2e appl03at0on o6 t2e 32ar1or 6or an or4er to t2e 32ar1ee7
t2e "anD o6 Amer03a at0onal &rust an4 (a!0n1s Asso30at0on @t2e "anDA7 to pro4u3e :e6ore t2e 2ear0n1 o6 t2e
appeal 6rom t2e or4er o6 sale ma4e :y t2e H012 Court 0n a 6ore3losure a3t0on7 a 1uarantee terme4 a
/
3ont0nu0n1 1uarantee e5e3ute4 :y t2e 32ar1or8 &2e appl03at0on was sa04 to :e 6or t2e purpose o6 esta:l0s20n1
t2e alle1at0on t2at s2e 2a4 s01ne4 t2e 1uarantee 0n :lanD an4 t2at 3erta0n wor4s were a6terwar4s 0n 6rau4 o6
2er 60lle4 0n :y t2e 32ar1ee8 &2e 32ar1or :y 2er 3ounsel 0nt0mate4 t2at 6or t20s purpose s2e 0nten4e4 to su:m0t
t2e 1uarantee to a 4o3ument e5am0ner 6or 20s 0nspe3t0on an4 report an4 to use t2e report at t2e appeal8
At t2e 2ear0n17 we 3oul4 not see t2e rele!an3e o6 a 1uarantee 0n an a3t0on on a separate 4o3ument7 !0E8 t2e
32ar1e7 nor were we at all a4!0se4 2ow t2e appl03at0on 3oul4 :e Bust060e4 on well+esta:l0s2e4 pra3t03e8 It now
:e2o!es us to 10!e more 6ully our reasons8
&2e appl03ant+32ar1or 0s t2e w06e o6 one (0ow &0n1 Yon17 w2o was t2e sole propr0etor o6 a 60rm Dnown as t2e
Valor Ele3tr03al an4 Ele3tron03 Co8 @ValorA8 (2e 0s also t2e re10stere4 propr0etress o6 two p0e3es o6 lan47
F&@RA=.1. 6or Lot =0/ 0n t2e MuD0m o6 Getal0n1 an4 C8&8 2<09 6or Lot /==< 0n t2e MuD0m o6 "enton18 $n
Apr0l 217 19=17 s2e e5e3ute4 a 32ar1e on Lot =0/ 0n 6a!our o6 t2e "anD to se3ure t2e repayment 4ue to t2e
"anD on t2e 3urrent or ot2er a33ounts o6 Valor w0t2 t2e "anD8 &2e l0m0t o6 t2e o!er4ra6t was not spe3060e47 :ut
4ou:tless 0t was Dnown to t2e part0es an4 woul4 appear to :e H.070008 e5t on o!em:er /07 19=.7 t2e
32ar1or e5e3ute4 a se3on4 32ar1e7 t20s t0me on Lot /==<7 6or t2e same purpose8 &2e l0m0t o6 t2e o!er4ra6t
was state4 0n t20s se3on4 32ar1e to :e H9=07000 an4 t2ere 3oul4 :e no poss0:le 4ou:t 6rom t2e p2otostat
3opy o6 t2e 32ar1e 0tsel6 an4 6rom t2e anne5ure to t2e 32ar1e w2ere t2e 601ure was also spelle4 out 0n wor4s
t2at t20s sum represente4 t2e l0m0t o6 t2e o!er4ra6t8 &2e attestat0on o6 2er e5e3ut0on o6 t20s se3on4 32ar1e
was :y a sol030tor w2o 3la0me4 to Dnow 2er personally an4 w2o t2ou12 o6 a 4066erent ra3e 404 not re;u0re t2e
ser!03es o6 an 0nterpreter 6or 2er e5e3ut0on o6 a 4o3ument w2032 was wr0tten 0n t2e nat0onal lan1ua1e o6 t2e
3ountry8 He was also a 4066erent sol030tor 6rom t2e one w2o atteste4 t2e "anDIs e5e3ut0on8 &2e sole propr0etor
o6 Valor 1a!e 0nstru3t0ons to t2e "anD t2at t2e only person to operate ValorIs a33ount w0t2 t2e "anD was7 unt0l
6urt2er not03e @w2032 was at no mater0al t0me e!er 10!enA7 t2e 32ar1or 2ersel68 &2e 0nstru3t0ons were
3on!eye4 0n a stan4ar4 6orm use4 :y t2e "anD an4 !ery 3orre3tly terme4 a man4ate 6or a t20r4 party to
operate t2e 3urrent a33ount o6 a sole propr0etors20p 60rm8 It was s01ne4 :y t2e sole propr0etor7 an4 0t :ore t2e
spe30men s01nature o6 t2e operator8
"etween t2e 2 32ar1es7 t2e 32ar1or also e5e3ute4 a 3ont0nu0n1 1uarantee on anot2er stan4ar4 6orm use4 :y
t2e "anD8 &20s stan4ar4 6orm 0s a pr0nte4 one w0t2 spa3es to :e 60lle4 w0t2 t2e part03ulars relat0n1 to t2e
1uarantee8 &2ese spa3es were pro!04e4 6or t2e 0nsert0on o6 t2e name an4 a44ress o6 t2e 1uarantor7 t2e
name an4 a44ress o6 t2e "anDIs 3ustomer w2ose a33ount was t2e su:Be3t matter o6 t2e 1uarantee an4 t2e
e5tent o6 t2e 1uarantee w2032 woul4 0n t2e usual way :e a 601ure 6ollowe4 :y t2e spell0n1 out o6 t20s 601ure 0n
wor4s8 &20s 1uarantee was t2e su:Be3t+matter o6 t2e 32ar1orIs appl03at0on7 pro4u3t0on o6 w2032 we
40sallowe48
&2e o!er4ra6t a33ount o6 Valor stoo4 at H89?728?8=9 on June 217 19=<8 92en 4eman4 6or repayment o6 t20s
sum met w0t2 no response7 t2e "anD ser!e4 not03e o6 4e6ault 4ate4 Au1ust 217 19=< 0n %orm 1?J8 In
3ompl0an3e w0t2 se3t0on 2<. at0onal Lan4 Co4e7 t2e not03e spe3060e4 t2e :rea32 w2032 was 6a0lure to repay
t2e w2ole sum 4ue a6ter 4eman4 an4 t2e 3ont0nuat0on o6 t2e :rea32 6or at least one mont2 an4 0t re;u0re4 t2e
repayment o6 t2e sum ow0n1 w0t2 t2e warn0n1 t2at 6a0lure to 4o so woul4 result 0n an appl03at0on 6or an or4er
o6 sale8
&2e 6ore3losure summons was 0ssue4 out on Je3em:er .7 19=< :ut mu32 earl0er7 on Mar32 227 19=<7 0n 6a3t7
t2e "anD 2a4 sue4 out a wr0t a1a0nst (0ew &0n1 Yon1 as t2e sole propr0etor o6 Valor7 6or t2e repayment o6 t2e
o!er4ra6t 0n 20s a33ount w2032 t2en stoo4 at H89=7==.8=18 &2e "anD also Bo0ne4 t2ree ot2ers7 t2e 32ar1or7 %u
#oD (0ew an4 Yoon1 %ooD on t2e0r 1uarantees7 t2e l0m0ts o6 w2032 were H9=070007 H.007000 an4 H1/07000
respe3t0!ely8 Irre6uta:le 4o3umentary e!04en3e was pro4u3e47 esta:l0s20n1 t2at %u #oD (0ew was t2e sole
propr0etor o6 90n1 L0an Enterpr0se an4 2e 2a4 s0m0larly appo0nte4 C2a0 Yen as t2e sole operator o6 20s
a33ount w0t2 t2e
'()* + ML, '-+ at '-.
"anD8 &2e re3or4 0s 2owe!er s0lent on w2et2er Yoon1 %ooD stoo4 on t2e same 6oot0n1 as (0ow &0n1 Yon1
an4 %u #oD (0ew8
It 0s reasona:ly 3lear t2at t2e lan4 w2032 0s t2e su:Be3t matter o6 t2e se3on4 32ar1e7 :e0n1 s0tuate4 0n
"enton1 0n t2e (tate o6 Ga2an17 a town not o6 !ery 3ons04era:le 0mportan3e7 0s not su66030ent to real0se t2e 6ull
e5tent o6 t2e o!er4ra6t 6a30l0t0es 1rante4 un4er t2e 32ar1e an4 t2at 0t was 6or t20s reason t2at t2e "anD 3oul4
not rely on t2e 6ore3losure summons to re3o!er w2at 0t 2a4 lent to Valor an4 2a4 to taDe a3t0on on t2e
.
1uarantees8
&2e 4e6en3e t2at was 4el0!ere4 6or C2a0 Yen l0terally Kt2rew t2e :ooDK at t2e "anD8 (2e 3la0me4 t2at s2e 2a4
s01ne4 t2e 1uarantee 0n :lanD an4 4en0e4 any re3e0pt o6 any a4!an3e o6 t2e H9=07000 w2032 3onse;uently
was not ment0one4 0n 0t7 an4 s2e asserte4 t2at Valor was ma4e respons0:le 6or t2e money 4ue to t2e "anD
6rom t2e t20r4 an4 6ourt2 4e6en4ants8 (2e also 32ar1e4 t2e "anD w0t2 6rau4 :y a3t0n1 on t2e 32ar1es an4 t2e
1uarantee w2en 0t was a1ree4 :etween t2em t2at t2e 4o3uments were not to :e a3te4 on8 (2e ma4e many
ot2er alle1at0ons8 &2e trut2 o6 2er alle1at0ons w0ll o6 3ourse 2a!e to :e esta:l0s2e4 at t2e tr0al o6 t2e a3t0on
an4 teste4 a1a0nst t2e 3ounter alle1at0ons ma4e :y *an #a2 C2a07 an ass0stant mana1er o6 t2e "anD on July
17 19=? o6 KD0te 6ly0n1K w20327 as we un4erstan4 0t7 0s a 3ommer30al slan1 6or an operat0on o6 a somew2at
4u:0ous 32ara3ter 6or ra0s0n1 money on 3re40t8 "ut t20s o:ser!at0on s2oul4 :e ma4eC t2e 32ar1or was sa04 to
2a!e :een 10!en a 3opy o6 t2e 1uarantee an4 one woul4 2a!e e5pe3te4 2er to 4eny t20s alle1at0on or 06 s2e
3oul4 not7 to pro4u3e t2e 3opy 10!en to 2er an4 s2ow w2et2er 0t was e5e3ute4 also 0n :lanD8
9e ment0on t20s 30!0l a3t0on partly :e3ause 0t was re6erre4 to 0n t2e 32ar1orIs a6604a!0t 60le4 to oppose t2e
6ore3losure summons an4 also to note an4 0n403ate t2at t2e a33usat0on t2at t2e 1uarantee was s01ne4 0n
:lanD7 2a4 :een ma4e earl0er an4 at t2e least7 6or w2at 0t 0s wort27 :ore t2e marD o6 3ons0sten3y8
"ut t2ou12 ment0one47 t2e ;uest0on o6 t2e 1uarantee was not taDen up at t2e 2ear0n1 o6 t2e 6ore3losure
a3t0on an4 no appl03at0on was ma4e to test t2e aut2ent030ty o6 t2e 4o3ument8 &2e appl03at0on :e6ore us was
t2ere6ore one 6or t2e 0ntro4u3t0on o6 6res2 e!04en3e8
&2e pr0n30ples to :e appl0e4 6or t2e re3ept0on o6 6res2 e!04en3e 2a!e :een state4 :y Jenn0n1 L8J8 @as 2e t2en
wasA 0n Ladd v Marshall ,19<.- 1 9LR 1.89 at pa1e 1.91C
K&o Bust06y t2e re3ept0on o6 6res2 e!04en3e or a new tr0al7 t2ree 3on40t0ons must :e 6ul60lle4C 60rst7 0t must :e s2own t2at
t2e e!04en3e 3oul4 not 2a!e :een o:ta0ne4 w0t2 reasona:le 40l01en3e 6or use at t2e tr0al> se3on4ly t2at e!04en3e must
:e su32 t2at7 06 10!en7 0t woul4 pro:a:ly 2a!e an 0mportant 0n6luen3e on t2e result o6 t2e 3ase7 t2ou12 0t nee4 not :e
4e30s0!e> t20r4ly t2e e!04en3e must :e su32 as 0s presuma:ly to :e :el0e!e47 or 0n ot2er wor4s7 0t must :e apparently
3re40:le t2ou12 0t nee4 not :e 0n3ontro!ert0:le8K
&2ese pr0n30ples as so state4 2a!e :een 3ons0stently 6ollowe4 an4 2a!e now re3e0!e4 t2e appro!al o6 t2e
House o6 Lor4s 0n Skone v Skone & Anor ,19=1- 1 9LR 812 (ee also Leng Lan /f0 v SM Yesudian ,19/9-
MLJ 222> ,19/8- %M(LR ?? an4 Shaik Sahied bin Abdullah Bajarie v AA Mootoo !arpen !hitt" @1910A 2
MC 1? at pa1e 218
Enou127 we t20nD7 2as :een sa04 to s2ow t2at t2e appl03ant 3oul4 not 2a!e sat0s60e4 t2e 60rst re;u0rement8
%a0lure to sat0s6y t20s 60rst re;u0rement 0s su66030ent 6or t2e 40sm0ssal o6 t2e appl03at0onC Lau #oo Sun v
$overn1ent of Mala"sia ,19=0- 2 MLJ =08
As 6or t2e se3on47 0t seeme4 to us at t2e 2ear0n1 o6 t2e appl03at0on an4 st0ll 4oes to us now7 an4 :eyon4
ar1ument t2at t2e su:Be3t matter o6 t2e 30!0l su0t was t2e 1uarantee an4 t2at o6 t2e 6ore3losure summons was
t2e two 32ar1es8 It 6ollows t2ere6ore t2at w20le t2e alle1at0ons re1ar40n1 t2e 1uarantee m012t :e mater0al to
t2e 30!0l su0t7 0t 2a4 a:solutely no rele!an3e to t2e 6ore3losure a3t0on8 &2at was t2e !0ew o6 t2e "anD w2ose
3ounsel7 0n our !0ew7 !ery 3orre3tly7 0n403ate4 20s ent0re w0ll0n1ness to maDe a!a0la:le t2e 4o3ument 0n
;uest0on at t2e 2ear0n1 an4 6or t2e purpose o6 t2e 30!0l a3t0on :ut w2o sa04 t2at 2e 3oul4 see no 3onne3t0on
w2atsoe!er w0t2 t2e or4er o6 sale o6 t2e lan4s se3ure4 :y t2e 32ar1es8 In t2e matter o6 t2e 32ar1es7 w2at
was rele!ant was t2e 1roun4 on w2032 t2e 32ar1or 32allen1e4 t2e 1rant0n1 o6 t2e or4er o6 sale an4 t2at
str03tly was t2e matter :e6ore t20s 3ourt on an appeal 6rom t2e H012 Court8
In !0ew o6 t2e H012 Court a3t0on on t2e 1uarantee7 we must 3learly re6ra0n 6rom 3omment0n1 on 0ts
aut2ent030ty or 3re40:0l0ty :ut 0n all t2e 30r3umstan3es o6 t2e 3ase7 t2ere was no mer0t 0n t2e appl03at0on an4 we
re6use4 0t w0t2 3osts8
Application refused2
(ol030torsC $% ajan & !o3 Skrine & !o8