JUDGMENT

LC Vohrah J:

This was an application by way of notice of motion on the part of the judgment debtor ("the guarantor") for the bankruptcy notice and all subsequent proceedings thereto including the creditor's petition to be set aside or to be stayed under s 97 of the Bankruptcy Act 1967. It was agreed that the decision in the present application would bind similar applications in bankruptcy nos 43-639 of 1987, 43-652 of 1987 and 43-653 of 1987 as all four matters arose out of a loan transaction in which the four judgment debtors acted separately as guarantOrs

The facts in so far as they are relevant to the present application are briefly as follows. By a letter of approval of a loan dated 30 October 1985 (See encl 14, Exhibit 'A') the judgment creditor ("the lender") approved a loan of RM600,000 to the principal debtor, one Mah Kwai Ming ("the borrower") upon the conditions, inter alia , that a third party charge be executed in favour of the lender in respect of land held under Malay lease No 60 lot 2576 in the Mukim of Senai-Kulai belonging to Kulai Jaya Sdn Bhd and that its directors provide personal guarantees to the lender. In consequence Kulai Jaya Sdn Bhd as registered ow