Mohamed Dzaiddin Abdullah SCJ:

[1] These are two appeals against the decision of Shaik Daud J, given in chambers on 27 August 1992, on an appeal from the Registrar's decision, refusing to strike out the counterclaim and the reply and defence to counterclaim made pursuant to O 18 r 19 of the Rules of the High .

[2] Since we are concerned here with the question of striking out pleadings under O 18 r 19, we do not propose to go into the facts and documents in any more detail than is necessary. From the writ of summons and the statement of claim, it is clear to us that the respondent's claim against the appellants in this civil suit is for recovery of the amount due and owing under the various banking facilities as at 30 September 1988 with interest, granted by the respondent to the first appellant and guaranteed by the second and third appellants and one Kuah Sai Yok (deceased). The following facts are not in dispute. As at 16 July 1984, the following facilities were granted to the appellants:-

(a) a secured overdraft facility (OD) of RM750,000

(b) a Letter of Credit facility (LC) of RM1.0 million;

(c) a Trust Receipt facility (TR) of RM500,000; and

(d) a Letter of Guarantee facilit