JUDGMENT

Haji Mohd Jemuri bin Serjan CJ(Borneo):

There are only two basic important issues which call for our determination in this appeal, one being whether the judgment in default entered by the appellants against the respondent was irregular and thereby may be set aside under O. 19 r. 9 of the Rules of the High Court 1980, and the other whether assuming that the judgment is regular, it nevertheless may be set aside on the ground that the respondent has a good defence on merits.

The facts of the case may be briefly stated as follows. The 1st appellant is a private limited company and engaged in the business of a housing developer in respect of a housing project in Taman Seri Buloh. The 2nd appellant, also a private limited company, signed a guarantee on 26 August 1986 to guarantee all monies granted by the respondent to the 1st appellant and all the liabilities incurred by the 1st appellant in respect of the loans not exceeding RM6.3 million, namely, the total amount of the secured overdraft facility. The 3rd, 4th, 5th and 6th appellants are also guarantors under a guarantee dated 12 August 1986 for the same sum of RM6.3 million secured overdraft facility granted by the responde