Richard Talalla J:

The plaintiff is a licenced finance company. The 1st defendant under the hand of the 3rd defendant who was the managing director and chairman of the 1st defendant made an application to the plaintiff for a loan of RM1.6 million. The 2nd and 3rd defendants as proposed guarantors gave in writing their personal particulars including their respective addresses as No. 28, Jalan Ibrahim, Segamat, Johor (the said address). That was also the stated address of the 1st defendant although its registered office was stated as being one at Muar. By a letter dated 4 July 1984 the plaintiff offered the 1st defendant a fixed loan of RM2 million upon terms and conditions which included interest at the rate of 15.5% per annum with monthly rests, the period of loan to be not exceeding three years, the security for the loan to be:

(a) a third party first legal charge over land and building held under a certain grant of land and a number of certificates of title and;

(b) joint and several guarantees to be given by the 2nd and the 3rd defendants.

There was also a repayment schedule for payment not later than thirty six months. The servicing of interest was to be on a monthly b