Gopal Sri Ram JCA:

[1] After a short trial at which viva voce evidence was led, and at the conclusion of which written argument was put in, Abdul Malek J, in a reserved decision which he handed down on 24 November 1993, entered judgment for the respondent in the sum of RM203,072.56 with interest. He also awarded half the costs of the suit. By the same order, he dismissed two other items claimed by the respondent totaling about RM95,000. The appellant appealed against the finding of liability against it, while the respondent cross-appealed against the refusal of the learned Judge to enter judgment in its favour for the two sums we spoke of a moment ago.

[2] The respondent's writ, as originally framed, claimed a sum of RM391,832.53. On 6 May 1992, the High Court, upon a summons for judgment, entered judgment for the sum of RM93,431.75 and gave the appellant unconditional leave to defend as to the balance. It is pursuant to that order that the trial mentioned earlier took place, resulting in respect of which the appeal and cross-appeal are directed.

[3] The background to the dispute between the parties may be shortly stated.

[4] A company known as Chemitrade Sdn Bhd ("Chemitrade")