Goh Phai Cheng JC

There are three appeals in this suit. The first appeal is against a decision given by the learned assistant registrar on 4 January 1991 dismissing an application made by the first defendants to set aside a judgment entered against the first defendants in default of appearance with costs fixed at $800.

The second appeal is against a decision given by the assistant registrar on 10 January 1991 ordering that:

(a) the second defendant's application that para 25 to 30 of the affidavit of James Loke filed on 6 September 1990 and the exhibit referred thereto as 'JL-4' filed in support of the application for summary judgment against the second defendant herein be expunged from the records in these proceedings be dismissed;

(b) paragraphs 25 to 30 of the said affidavit of James Loke filed on 6 September 1990 be expunged in so far as proceedings against the first defendants are concerned and the said affidavit shall be so endorsed on the first page thereof and paras 25 to 30 thereof and exh 'JL-4' thereto be sidelined in red; and

(c) the second defendant do pay the plaintiffs' costs fixed at $600 forthwith.

The third appeal is against a decision of the learned assistant registrar who granted summary judgment on 1 October 1990 against the second defendant for the sum of $54,500 to the plaintiffs with interest and costs.

The plaintiffs are manufacturers of fruit juices, soft drinks and other beverages and the first defendants are customers of the plaintiffs. The second defendant is a director of the first defendants. The plaintiffs' claim against the first defendants is for the proceeds of a cheque no 390463 post-dated 20 August 1989 for the sum of $54,500 drawn by the first defendants on the Rochor Road Branch of the DBS Bank of Singapore, which was dishonoured on presentation for payment. The plaintiffs were requested by the bank to 'refer to drawer'.

The plaintiffs' claim against the second defendants is based on a contract dated 17 July 1989 made between the plaintiffs and the second defendant which reads:

Date: 17 July 1989

To: Yeo Hiap Seng

950, Dunearn Road

Singapore 2366

Attn: Mr CT Yeow

Dear Sir

I, Amy Tan Meng Choo of I/C No 0978214A of 18, Chu Lin Road Singapore 2366, and a director of Australian Corpn Pte Ltd, a company registered in the Republic of Singapore hereby guarantee that the DBS Cheque No 390463 for the sum of S$54,500 issued in favour of Yeo Hiap Seng Ltd will be honoured.

Yours faithfully,

Signed:

Amy Tan Meng Choo

Chairman.

The above 'guarantee' was given by the second defendant on the letter-head of Australian Food Corpn Pte Ltd.

Sometime in July 1989, a contract was entered into between the plaintiffs and the first defendants for the plaintiffs to produce and supply a kiwi fruit juice drink in cans to the first defendants' customer in Taiwan. The said contract provided, inter alia, that the plaintiffs would produce the fruit juice from kiwi fruit juice concentrate supplied by the first defendants in accordance with certain agreed procedures and the specifications supplied by the first defendants. The kiwi fruit juice concentrate was produced by Tuara Foods Co-operative Ltd in New Zealand and shipped to the plaintiffs in Singapore on the instructions of the first defendants. A total of 10,500 cartons were produced by the plaintiffs and shipped in five container loads to the first defendants' customer in Taiwan. Each carton contained 24 cans of fruit juice drink produced by the plaintiffs. The plaintiffs had produced more than 10,500 cartons of the fruit juice drink and the excess were held in their possession pending the placement of further orders from the first defendants. The first defendants had paid the plaintiffs an initial part-payment of US$42,000, the equivalent of S$81,738.84.

The said DBS cheque for the sum of $54,500 was issued by the first defendants to the plaintiffs for the balance of moneys due and owing by the first defendants to the plaintiffs for the 10,500 cartons of