JUDGMENT

Raja Azlan Shah Ag (Malaya) CJ (delivering the judgment of the Court):

This was an appeal from an order of the High Court at Kuala Lumpur allowing the application by the respondents, as the second defendants in the action, that the judgment entered against them in default of appearance be set aside. We dismissed the appeal on 30 May 1978.

The appellants claimed a sum of $73,402.80 being the amount alleged to be owing by the first defendants, Syarikat Baiduri (M) Sdn. Bhd, on an overdraft account. The respondents were sued as guarantors for the first defendants. The specially endorsed writ was filed on 16 March 1976 and served on the respondents on 31 March 1976. On 23 June 1976, the appellants obtained judgment against the respondents in default of appearance.

The application to set aside the judgment was made by summons-in-chambers dated 18 October 1977. One ground stated in the affidavit in support of the application is that at the time when the writ was served the respondents were engaged in major administrative reorganisation, and from 22 March 1976 till the end of June 1976 they were busy transferring files and personnel from the Contracts Unit to the newly set up O