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1990 MarsdenLR 954

HIGH COURT BORNEO KUCHING
FUI LIAN CREDIT & LEASING SDN BHD – Appellant
Versus
KIM LEONG TIMBER SDN BHD & ORS – Respondent
[Suit No: 67 Of 1986]



Petitioner Advocates:Chew Peng Hui ,Respondent Advocate: Ting Sing Chuan

JUDGMENT

Chong Siew Fai J:

[1] This is an application by the plaintiff under O 14 for summary judgment against the 1st defendant as lessee and against the 2nd, 4th, 5th, 6th and 7th defendants as guarantors for the sum of RM285,915.22 made up as follows:

and for further interest on RM203,334 at 0.065% per day from 9 January 1986 to date of actual payment and costs.

[2] On record it may appear a little odd that the application by way of summons in chambers was dated 18 November 1987 when defences were dated 16 May 1986 (ie more than 1½ years later). This is because initially the plaintiff filed an O 14 application. 3 days later, the defendants filed 2 defences both dated 16 May 1986. Subsequently the plaintiff obtained leave and amended its writ and statement of claim. To make easy reading and to avoid confusion, the earlier O 14 application was withdrawn and a fresh one filed which is the present application dated 18 November 1987.

[3] Since the defendants in this application did not amend their defences after being served with the amended statement of claim, they are taken to rely on their 2 defences both dated 16 May 1986 in answer to the amended statement of claim (O 20 r 3(6)).

Affidavits

[4] Altogether the plaintiff relies on 4 affidavits and the defendants, on 6 affidavits. They are listed below and will, for convenience, be referred to as indicated within the brackets immediately appearing behind each of them:

A. For the plaintiff:

(a) James Leong's affidavit made on 20 October 1987 (Leong's 1st affidavit).

(b) James Leong's affidavit made on 23 July 1986 (Leong's 2nd affidavit).

(c) James Leong's affidavit made on 19 June 1987 (Leong's 3rd affidavit).

(d) James Leong's affidavit made on 18 August 1987 (Leong's 4th affidavit).

B. For the 1st defendant:

5th defendant Ho Boon Hong's affidavit made on 1st defendant's behalf on 20 June 1988.

C. (a) 2nd defendant Wong Yuk Hung's affidavit made on 20 June 1988 (2nd defendant's affidavit).

(b) 4th defendant Lu Mee No's affidavit made on 13 July 1988 (4th defendant's affidavit).

(c) 5th defendant Ho Boon Hong's affidavit made on 20 June 1988 (5th defendant's affidavit)

(d) 6th defendant Ngui Ngee Tee's affidavit made on 21 June 1988 (6th defendant's affidavit)

(e) 7th defendant Ho Boon Cheng's affidavit made on 18 June 1988 (7th defendant's affidavit)

[5] It may be noted that all the affidavits of defendants 2, 4, 5, 6 and 7 made by and on behalf of themselves are in substance the same.

Background

[6] The background leading to the institution of this action may be thus briefly stated:

"By a lease agreement dated 3 January 1984 (exh 'A' annexed to Leong's 1st affidavit) the plaintiff let to the 1st defendant, a limited company, 4 units of caterpillar for a period of 24 months commencing from 3 January 1984 at the monthly rental of RM20,334 payable on the 3rd of each month, the first monthly rent to be paid on 3 January 1984. The plaintiff also avers that by 3 guarantee and indemnity agreements (for brevity, guarantee agreements) all dated 3 January 1984 (exh 'BI', 'B2' and 'B3' annexed to Leong's 1st affidavit) all the other defendants 2 to 8 guaranteed, inter alia, the punctual payment of all sums of money that might be due or become due to the plaintiff under the lease agreement and the due performance and observance by the 1st defendant of the stipulations and conditions therein as well as agreeing to indemnify the plaintiff against any loss or damage the plaintiff might sustain under the lease agreement."

[7] It is the case of the plaintiff that the 1st defendant persistently defaulted in the payment of the monthly rentals, that the plaintiff on or about 18 November 1985 terminated the lease agreement and repossessed the 4 tractors and that at the time of the termination, the 1st defendant was in arrears of rentals from the month of February 1985 to November 1985 totalling RM203,334. The plaintiff also claims a sum of RM29,556.28 being repossession and incidental expenses, as well as "overdue inter

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