Amar Mohd Jemuri Serjan CJ (Borneo):

[1] This appeal arose out of the decision of the High Court at Kuala Lumpur on certain preliminary issues on points of law raised by the respondent by way of an application under O 33 r 2 of the Rules of the High 1980. The issues involve the interpretation of certain provisions of the Borrowing Companies Act 1969 (Act No 6) which later on, by amendment, was known as the Finance Companies Act 1969, (the Act) and referred to as such throughout our judgment.

[2] The first defendant was at all relevant times a licensed borrowing company within the terms of the Finance Companies Act 1969,. By a Letter of Guarantee dated the 25 August 1980, the first defendant, in consideration of the plaintiff's agreeing at the 1st defendant's request to enter into or continue with shipping and/or commercial and/or financial transactions with Malaysia Air Charter Co Sdn Bhd (the Principal Debtor) relating to the purchase of aircraft and spares by the said Debtor, agreed to guarantee the repayment to the plaintiff on demand of all sums of money due and owing to the plaintiff by the said Principal Debtor arising out of any transactions aforesaid or otherwise, to