Salleh Abas LP:

In the Court below the respondents sued five defendants including the two appellants in this appeal for the recovery of a sum of RM66,303.89 which arose in connection with a business deal in which the respondents agreed to finance the sale of motor vehicles by NKM Credit Sdn. Bhd. (the first defendant) to members of the public under hire purchase agreements. As part of the deal the other four defendants (including the two appellants) guaranteed to indemnify the respondents against any losses incurred or suffered. This suit was commenced on 3 December 1983.

The first defendant did not enter an appearance and so a judgment in default was entered against them. The other defendants had all entered their appearances on diverse dates. The present appellants entered theirs on 10 and 4 April 1984 respectively.

On 17 April 1984 upon a request by the defendants' solicitors, the respondents' solicitors supplied to the former copies of documents relating to the claim.

On 31 May 1984 the respondents took out a summons-in-chambers under O. 14 against the four defendants to sign a final judgment but the sum to be signed was a smaller sum i.e. RM66,303.89. The reason for t