GROUNDS OF JUDGMENT

1.0 Introduction

1.1. The Plaintiff in this action, Danaharta Urus Sdn Bhd ('Danaharta') makes claim against both the Defendants on the basis of a Guarantee and Indemnity dated 24 January 1997 ('the Guarantee') executed between the Defendants and Bank Bumiputra Malaysia Berhad ('the Bank') to guarantee the repayment of all sums due and owing by a borrower known as Reyick Industries (M) Sdn Bhd ('the Borrower') under trade financing facilities.

1.2. At the outset it is relevant to note that at the trial of this action, Danaharta proceeds against the second Defendant, Ng Chooi Kieng only ('D2'). This is because the first Defendant, Kam Tick Beng has been adjudicated a bankrupt. At the trial of this action counsel for Danaharta sought leave of the Court to withdraw its claim against D1. The claim against D1 was accordingly struck out.

1.3. It is also relevant that judgment in default was obtained against the Borrower in suit number D8-22-2110-2002 in the sum of RM2,042,321.86 as of 31 July 2001. In that suit the Defendants here had been made parties, but the plaintiff in that suit had been unable to serve the writ against the Defendants and the writ had expired. Accord