Gopal Sri Ram JCA:

[1] This appeal was heard and dismissed on 6 June 1995, without calling upon Counsel for the respondents to reply. My reasons for the decision reached now follow.

[2] Siah Teong Loo & Sons Sdn Bhd ('the company') is a private limited company. At all material times, the appellants were its shareholders and directors. It is their family company. Encik Alvin John who appeared for the appellants, after narrating these facts, conceded, in response to a question put by me, that the appellants are in truth the alter ego of the company.

[3] The company was in need of funds. It applied for a loan to Interfinance Bhd ('the lender'). The lender agreed to grant a loan. One of the conditions of the loan was that there should be security in the form of a charge over land. The respondents had a piece of land. The appellants approached the respondents and asked them to create a charge in favour of the lender to secure the loan. The respondents agreed. But they required some security of the appellants that the loan will be repaid. The appellants agreed to provide a guarantee to secure the due performance by them of the terms of the loan agreement which they had with the lend