Chong Siew Fai CJ (Sabah & Sarawak):

[1] The appellant/plaintiff (assignee) appeals against the decision of the Judge in chambers who overruled the Senior Assistant Registrar and set aside the judgment in default of appearance obtained by the assignee against the respondent/2nd defendant (guarantor) with costs.

[2] The relevant facts of the case may be summarised as follows:

By a hire-purchase agreement dated 15 March 1982 the Malayan Finance Corporation Berhad (the Finance Company) let to one Sin Yew Lee Mining Sdn Bhd (the hirer), on hire-purchase, a hydraulic excavator for the price of RM179,250 payable as follows:

(a) RM37,500 as deposit;

(b) the balance thereof by monthly instalments of RM5,906.25 each commencing on 15 April 1982 and thereafter on the 15th day of each succeeding month.

[3] By a letter of guarantee dated 15 March 1982, the guarantor guaranteed the due payment of all sums and the due performance and observance of all terms and conditions by the hirer contained in the hire-purchase agreement, and also undertook to indemnify the Finance Company against all loss or damage that might be sustained by the Finance Company under the hire-purchase agreement.

[4] In brea