JUDGMENT

Peh Swee Chin J:

I have earlier dismissed an appeal by the 7th defendant/appellant, (hereinafter called guarantor), against the decision of the learned Senior Assistant Registrar granting leave to the plaintiff to sign judgment on an O. 14 application but in doing so, I have reduced the judgment sum from RM1,311,792.85 with interest thereon to RM700,000 with interest thereon. I now give my grounds of decision.

The plaintiff had claimed against the guarantor on the basis of a letter of guarantee dated 6 January 82, whereby, in consideration of the plaintiff giving credit to or lending to a 3rd party, called Sin Hup Woh Transport and Trading Agencies Company Sdn Bhd.,(herein after called the debtor), the guarantor agreed to guarantee the plaintiff by paying on demand, all money due and owing by the debtor, among other things, to the limit or extent, for principal, of RM700,000. On the date of the hearing of the application, the outstanding sum due from the debtor was said to be RM1,311,798.85, and a defence had already been filed by the guarantor.

It will be pertinent to refer to the defence. The guarantor denied, by the defence, the execution of the said letter of guarantee; th