JUDGMENT

Ravinthran Paramaguru JCA:

Introduction

[1] This is an appeal by the bank against the dismissal of its claim against four guarantors who were shareholders and directors of a company that borrowed money to purchase property. The case was summarily determined under O 14A of the Rules of 2012. The action originally included a claim against the borrower and a corporate guarantor. By the time of the hearing, both the borrower and the corporate guarantor had been wound up. The matter proceeded against the four guarantors only. The High Court dismissed the claim of the bank against the four guarantors on the principal ground that the loan was for the purpose of financing the purchase of native lands by a non- native in contravention of s 17 of the Sabah Land Ordinance (Cap 68). We shall first set out the relevant underlying facts of the claim and defence before discussing the legal issues that arise in this appeal.

Appellants' Claim

[2] The first respondent executed a Sale and Purchase agreement dated 2 March 2005 and a Supplementary Agreement dated 5 May 2005 to purchase the remaining term of the subleases of 224 parcels of land held under native title. The vendor in the said sale a