Hashim Yeop Sani CJM:

[1] The claim of the respondents/plaintiffs in the Court below arose out of a transaction involving two heavy machines being one Kawasaki Super Shovel (Engine No: 506431, Serial No: KLB 80-3325, Model KS 80) and Ursus Peroni Motor Graders (Model UP 120/A, Engine No: 60004323, Serial No: 006385) bearing registration No: WU 3566 and WU 3564 respectively. According to the statement of claim the appellants/defendants were the sole agents and distributors of these two vehicles and this was in fact admitted in para 2 of the statement of defence.

[2] The transaction was a simple hire purchase transaction between a company called Zarad Construction Sdn Bhd (Zarad) and the respondents. There was default under the hire purchase agreement (Exhibit P15). Behind the scene was however another agreement between the respondents and another leasing company called Colossal High Leasing Sdn Bhd (Colossal) which was a back to back arrangement whereby if Zarad defaulted Colossal had to indemnify the respondents to the full extent of the losses. Although Counsel for the appellants urged us to place importance on this arrangement (between the respondents and Colossal) we do no