1. Brief Facts

1.1. On or about 30/11/05, M. Saravanan (DW2) requested for a loan from the Plaintiff for the Defendant. DW2 spoke to M. Balakrishnan (PW1) the Managing Director of the Plaintiff, on behalf of K. Ravindran (DW1) the Executive Director of the Defendant and requested for a "short term friendly loan".

1.2. Upon the Defendant signing and forwarding a Letter of Undertaking dated 30/11/05 (Bundle B - pages 1 and 2) addressed to PW1 and the Plaintiff, the Plaintiff gave a loan of RM1.5 million to the Defendant to be repaid within 14 working days "from the date of receipt of the full loan".

1.3. The loan was disbursed by the Plaintiff as follows:

(i) RM500.000 paid by cheque into the Defendant's account on 6/12/05.

(ii) RM300.000 paid by telegraphic transfer into the Defendant's account on 7/12/05.

(iii) RM200.000 paid by telegraphic transfer into the Defendant's account on 8/12/05.

(iv) RM500.000 paid by telegraphic transfer into the Defendant's account on 12/12/05.

The loan was to be repaid by 30/12/05.

1.4. The Defendant in paragraph 3 of the Amended Defence admitted receiving the loan of RM1.5 million from the Plaintiff.

1.5. The Plaintiff claimed that the Defendant had failed to