JUDGMENT

Chan Sek Keong J:

This appeal concerns the damages, if any, payable to the defendant by the plaintiffs on their undertaking to pay damages given to the Court when it granted a Mareva injunction on 31 March 1983 restraining the defendant from disposing of certain funds in his bank account in Singapore.

The plaintiffs were carrying on the business of travel agents in Sri Lanka. The defendant was a director of a company called Sunna Travel Ltd. ("Sunna"), who were travel agents.

This action was commenced on 29 March 1983 by the plaintiffs to recover from the defendant the sum of S$10,000 being the proceeds of a cheque which had been paid on 4 March 1983 into the defendant's joint account with his wife in the Hongkong and Shanghai Bank, Serangoon Garden Way Branch ("HKSB"). The plaintiffs alleged that the cheque had been stolen from them. The Mareva injunction was served on HKSB on 11 April 1983.

On the first return date for the continuation of the injunction, 26 May 1983, the injunction was continued until 8 July 1983 when it was again continued until 29 July 1983. The defendant then entered appearance on 19 July 1983. On the return date on 29 July 1983, the injunction was