KL Rekhraj J:

Pursuant to the sale and purchase agreement dated 7 August 1995; and entered into between the plaintiffs; as the purchasers on the one part; and the defendant as the vendor on the other part (hereinafter called the sale and purchase agreement) wherein the vendor as the owner and as beneficial owner agreed to sell 1,530,000 shares held by him in Hamsay Glass Sdn. Bhd. (company) at a purchase consideration of RM6,340,000 (purchase price) upon terms and conditions as provided therein - inter alia, under cl. 8.2.3 upon a warranty representation of the defendant (vendor), that the company shall have a minimum profits for a period of three years effective 30 June 1997 as follows:

(a) for the year ending 1997 RM2 million;

(b) for the year ending 1998 RM2 million; and

(c) for the year ending 1999 RM2 million.

Further by cl. 8.3 of the agreement, the defendant undertook to indemnify and keep indemnified the purchasers against all losses arising out of all or any breach of warranties, undertakings or covenants and or misrepresentations. In addition to the above, the defendant also by cl. 8.9 of the said agreement warranted "the vendor further warrants and undertake