Mohd. Jemuri Serjan SCJ:

By a letter dated 6 January 1982 the respondent, Southern Bank Berhad, (the bank) granted an overdraft facility of RM700,000 to Sin Hup Woh Transport and Trading Agencies Company Bhd. (the company). The overdraft facility was serviced by a charge over 8 parcels of properties and guaranteed jointly and severally by the board of directors of the company of whom the appellant was a member. The guarantee which was executed on 6 January 1982 was a continuing guarantee to the limit of RM700,000. By a letter dated 13 January 1984 the respondent's then solicitor demanded payment of a sum of RM506,242.35 being the sum in excess of the overdraft from the company. As no payment was forthcoming the respondent commenced proceedings by a writ of summons dated 1 September 1984 against all the guarantors. According to the amended statement of claim the amount claimed by the respondent was for a sum of RM1,311,792.85 together with interest thereon at 16% per annum from 17 July 1984 to the date of satisfaction. The liability on the guarantors including the appellant arose out of the guarantee dated 6 January 1982 and another guarantee dated 19 September 1983 which w