Datuk Lim Kheng Kim, the first defendant herein, seeks to set aside a default judgment dated 18 March 1986 entered against him for the recovery of $1,243,859.44 with interest thereon at the rate of 14% pa from 1 October 1985 to date of realization and costs.

It appears from the statement of claim herein that the first defendant, along with the second, third and fourth defendants, had executed a joint and several guarantee, whereby in consideration of the plaintiff making or affording loan facilities to an incorporated company ('the borrower'), they had agreed that if the borrower shall in any respect fail to perform any of its obligations, then the defendants as guarantors shall indemnify the plaintiff, the sum of $1,500,000 together with interest, costs, charges and all sums payable by the borrower to the plaintiff.

Other provisions of the joint and several guarantee material to this application were as follows.

Paragraph (c) of the preamble provides:

The borrowers have applied to the society for a loan of ringgit one million and five hundred thousand ($1,500,000) only (hereinafter referred to as 'the said loan') for the purpose of financing the development of th