Vincent Ng J:

Factual Background

[1] The facts of the case could shortly be stated thus. the plaintiff, a commercial banking institution instituted this suit against the defendants for the recovery of monies due under credit facilities given by the former to the 2nd Defendant, which was guaranteed by the 1st Defendant. To secure the repayment of the facilities given to the 2nd Defendant a charge was registered in favour of the plaintiff over the 1st Defendant's land. The 2nd Defendant defaulted and failed to make repayment on the facilities. On 27 February 2001 the plaintiff's counsel sent letter of demand to both Defendants claiming a sum of RM2,904,144.61 as at 19 February 2001. the defendants did not respond to the said letters of demand. Pursuant to the terms of the loan facilities and guarantee agreement, the plaintiff disposed of the shares that were deposited with the plaintiff by the 2nd Defendant as security. the defendants were notified of this share disposal by a letter to them dated 14 July 2001 from the plaintiff's solicitors. However, the amount recovered on the share disposal fell short of the amount due and payable to the plaintiff, and the amount due, owing a