JUDGMENT

Raus Sharif CJ:

Introduction

[1] This is an appeal against the decision of the Court of Appeal given on 30 September 2015 in reversing the decision of the High Court. The High Court had on 8 July 2014 found in favour of the appellant (CIMB) in respect of competing claims with the 1st respondent (AmBank) over their respective charges on the same piece of land.

[2] Leave to appeal to this court was granted to the appellant on 17 September 2016 on a single question of law which reads:

"Whether a chargee comes within the meaning of 'purchaser' under the proviso to s 340(3) of the National Land Code 1965."

[3] For ease of reference, we will refer the parties in this appeal as they were referred to at the High Court.

Background Facts

[4] Chin Ting Seng and Chin Chong Lup (the Chins) were at the material time, owners of a piece of land situated at Seksyen 21, Mukim Bandar Klang, District of Klang, State of Negeri Selangor (the Property). On 23 March 2006, the Chins had executed a charge on the Property in favour of Southern Bank Berhad (SBB) as security for a banking facility. On 6 September 2006, the banking business of SBB was vested with CIMB.