Gopal Sri Ram JCA:

This is an appeal directed against the order of the High Court in Penang dismissing an application to set aside the judgment in default entered against the appellant as long ago as 13 November 1986.

The facts that form the background to this case have been dealt with in extenso by the learned judge in his judgment. We find it unnecessary to repeat them here. Suffice to say that the respondent had on 26 September 1986 commenced an action against the appellant and two other persons for recovery of a loan made by it to the appellant. The 2nd and 3rd defendants in the court below had guaranteed that loan. After the writ had been served, the 2nd and 3rd defendants entered an appearance. We have been advised by counsel that there were proceedings for summary judgment between the respondent and those defendants. There is another appeal pending before this court in respect of those proceedings with which we are not concerned here today. In the meantime, judgment in default was entered against the appellant on 13 November 1986.

It was not until after the respondent had commenced winding-up proceedings that the appellant's solicitors realised that they had neith