Haidar Mohd Noor JCA:

This appeal is confined to only one issue. The issue is whether the appellant (second defendant) has been discharged as a guarantor by the respondent bank.

The appellant relied on a letter dated 31 January 1985 (exh. 'D3') addressed to the respondent bank by the appellant whereby the respondent bank through its then Senior General Manager/Secretary, Mazlan bin Khamis (DW1) purportedly confirmed the appellant's application to be discharged as a guarantor to the bridging loan and overdraft facilities ("loan facilities") given to Asialand Housing Development Sdn. Bhd. (first defendant) by the respondent bank.

Facts

The respondent bank provided the loan facilities to the first defendant and as at 30 June 1986 a sum of RM3,448,111.44 together with interests as set out therein was due and payable (p. 17 of the Record). The appellant together with the third, fourth and fifth defendants stood as guarantors. All of them were directors of the first defendant.

Judgment in default of appearance was entered against the first defendant on 12 February 1987 and the claim against the third and fourth defendants as guarantors was withdrawn by the respondent bank. In