Anuar Bin Dato' Zainal Abidin J:

This is an appeal by United Asian Bank Bhd. (which, since the lodging of the appeal, has changed its name to Bank of Commerce Bhd,) against the decision of Zakaria Yatim J., given at Kuala Lumpur on 4 June 1991 whereby the learned Judge entered judgment against the appellant in the sum of RM1,491,424.34 together with interest on the sum of RM397,660 at the rate of 8% per annum from 25 August 1983 until the date of realisation. On 13 October 1992 after hearing arguments we dismissed the appeal with costs. We had at the time indicated that we would give written reasons for our decision and we accordingly do so now.

The facts of this case are fairly simple and straightforward. The appellant carries on banking business. It has a branch at Jalan Ipoh, Kuala Lumpur. The respondent was a customer of the appellant having an account at the said branch. The respondent's account No. 20-090 with the appellant was opened on 25 January 1978, by means of a document intituled "Account Opening Form". A directors' circular resolution dated 16 January 1978, accompanied the respondent's application to open the account and in it any 2 of the respondent's 3 dir