Richard Malanjum J:

The Claim And The Defences

In this action the plaintiffs are claiming for the following relief, namely:

(i) the said sum of RM6,223,241.00

(ii) agreed interest on the said sum of RM6,223,241.00 at the rate of 11% per annum calculated on day to day basis from 27th October 1997 till realisation;

(iii) such other reliefs this Honourable Court deems fit to grant.

The defendants are disputing the claim and have raised several issues in defence. For the 1st defendant the issues raised are basically that the claim is premature and/or extinguished as a result of the default on the part of the plaintiffs in not complying with the terms stated in a document dated 12 November 1996 (exh. P2).

There were also set-off and counterclaim filed but these were withdrawn in the course of the hearing.

As for the 2nd defendant initially there were various points raised. But some were abandoned. Hence I would only deal with the remaining points in this judgment.

And since there are also common points raised by both the 1st and 2nd defendants I will deal with those first and consider the other points separately if necessary.

The Background Facts

The plaintiffs were once the di