Suffian CJ (delivering judgment of the Court):

On 1st June, 1963, lbrahim bin Kimpal was riding on a lorry, being driven by Tan Keng Hong, the first defendant employed by Yoong Leok Kee Corp. Ltd. (the second defendant) along the Kuala Pilah-Seremban Road. Going down a slope at the bottom of which was a bend, the lorry loaded with timber overturned because of brake failure and as a result Ibrahim was killed. The administrators of his estate (plaintiffs) won judgement for damages in negligence against the two defendants, but the learned trial Judge held that the insurers of the lorry, the New India Assurance Company Ltd. who had been made a third party, were not liable to indemnify the defendants, who would therefore have to pay damages out of their own pocket.

The defendants appeal to us.

During the course of the arguments for reasons stated then, we indicated to Counsel that we dismissed the appeal against liability and against quantum.

It now remains for us to deal with the question whether or not the insurers are liable to indemnify the defendants.

The policy provides by s. II that -

The company [third party] will subject to the limits of liability indemnify the in