[1] This is an appeal by the appellant against the decision of the Court of Appeal in allowing the respondent's appeal against the decision of the High Court entering judgment in favour of the respondent in the sum of RM1,022,134.75 being the amount due as at the date of the winding up order of a company known as Monzo (M) Sdn Bhd ("Monzo").

Background Facts

[2] The relevant background facts of this case may be summarised as follows:

(i) The respondent, a licensed bank, granted a term loan of RM1,000,000.00 ("the loan") to Monzo at the interest rate of 1.75% per annum in addition to the respondent's prevailing Base Lending Rate.

(ii) The loan was secured by a charge over two pieces of land situated in the Mukim of Plentong, District of Johor Bahru. The loan was also secured by a Letter of Guarantee and Indemnity executed by the appellant and one Mok Hwee Huan.

(iii) Monzo defaulted in payment and it was subsequently wound up by a separate action in the Kuala Lumpur High Court on 19 June 2002.

(iv) The respondent then commenced this suit against the appellant and Mok Hwee Huan. However, Mok Hwee Huan was adjudged bankrupt in Singapore on 25 October 2002. The respondent obtained the order