GROUNDS OF JUDGMENT

Nallini Pathmanathan JC

1.0. Introduction

1.1. Civil Suit No. D2-22-419-1997 ('the Fleur Chem suit') and Civil Suit No. D2-22-420-1997 ('the Rubytrend suit') were consolidated for the purposes of trial vide order dated 10 February 2004. The trial proceeded for three days from 25 May 2009 to 27 May 2009. The Plaintiff, Malayan Banking Berhad, ('the Bank') called two witnesses in support of its case, while the Defendants called two witnesses in support of the defence and counterclaim. The Court ruled at the outset that trial on the counterclaims filed in both actions would be confined to liability only. If liability were established, damages were to be assessed by the Registar.

1.2. At trial in the Fleur Chem suit, the Bank withdrew the action against the 2^nd and 3^rd Defendants as they had been adjudicated bankrupt. The Fleur Chem suit therefore proceeded only against the first Defendant, Fleur Chem Sdn. Bhd. ('Fleur Chem') and the fourth Defendant and guarantor, Shia Lim ('Shia Lim'). As for the Rubytrend suit, the Bank withdrew the action against the 2^nd Defendant as she had been adjudicated bankrupt. The Rubytrend suit proceeded against the first Defendant in that