JUDGMENT

Tengku Maimun Tuan Mat J:

[1] BSN Merchant Bank Bhd, MBf Finance Bhd and Public Finance Bhd had agreed to grant to the first defendant a Bank Guarantee and a Term Loan under syndicated facilities agreement. In consideration of the first defendant executing the Facility Agreement, the second defendant and the third defendant executed a guarantee agreement dated 18. 10. 1996 to make payable monies and sum due and payable by the first defendant in the event of the first defendant's default.

[2] The facilities to be provided under the Facility Agreement consisted of:

(i) a Bank Guarantee amounting to RM45,000,000. 00 to be provided by BSN Merchant Bank Bhd, MBf Finance and Public Finance to the first defendant;

(ii) a Term Loan amounting to RM8,000,000. 00 to be provided by MBf Finance and Public Finance in the respective portions of one half to the first defendant;

[3] The availability period of the Bank Guarantee facility was for 6 months beginning 18. 10. 1996. The first defendant has failed to request for the issuance of the bank guarantee during the availability period and it expired on 18. 4. 1997. As for the Term Loan, it was agreed that it shall be repaid by 16 monthly insta