Raja Azlan Shah AG CJ (Malaya):

[1] This was an appeal from an order of the High Court at Kuala Lumpur allowing the application by the respondents, as the second defendants in the action, that the judgment entered against them in default of appearance be set aside. We dismissed the appeal on May 30, 1978.

[2] The appellants claimed a sum of $73,402.80 being the amount alleged to be owing by the first defendants, Syarikat Baiduri (M) Sdn Bhd, on an overdraft account. The respondents were sued as guarantors for the first defendants. The specially endorsed writ was filed on March 16, 1976 and served on the respondents on March 31, 1976. On June 23, 1976, the appellants obtained judgment against the respondents in default of appearance.

[3] The application to set aside the judgment was made by summons-in-chambers dated October 18, 1977. One ground stated in the affidavit in support of the application is that at the time when the writ was served the respondents were engaged in major administrative reorganisation, and from March 22, 1976 till the end of June 1976 they were busy transferring files and personnel from the Contracts Unit to the newly set up Overdraft Unit of the Loans D