Shaik Daud Ismail JCA:

This is an appeal against the decision of the High Court, which had refused to strike out the respondent's claim against the appellant. The appellant had filed a summons in chambers before the senior assistant registrar to have the respondent's claim struck out under O. 18 r. 19 of the Rules of the High Court 1980, on the ground that the respondent's claim was statute barred by virtue of s. 6(1)(a) of the Limitation Act 1953, ie, six years from the date the cause of action arose. The aplication was allowed but on appeal the High Court reversed the decision of the senior assistant registrar on the ground that there are triable issues and that the case is not one fit to be struck out underO. 18 r. 19.

The facts are that on 5 October 1982 the respondent approved a fixed loan of RM6 million to a company called Nik Seng Development Sdn Bhd. The appellant and two others executed a letter of guarantee dated 29 December 1982 and undertook to pay on demand.

The respondent issued a total of three demands. The first demand was made on 2 April 1986. Arising out of the first demand, the respondent sued the principal debtor ie, Nik Seng Development Sdn. Bhd. Stran