Kamalanathan Ratnam JC

This is an appeal by the second, third and fourth defendants against the decision of the learned senior assistant registrar ('SAR') who on 21 June 1995 granted the plaintiff judgment against the said defendants in an O 14 Rules of the High Court 1980 application.

The plaintiff was at all material times a finance company. By way of a loan agreement dated 23 April 1990, the plaintiff agreed to loan the first defendant RM140,000 for the development of a housing estate known as Taman Anggerik, Seremban ('the project').

It was pleaded in the plaintiff's statement of claim that by a guarantee, also dated 23 April 1990, the second, third, fourth and fifth defendants being the directors of the first defendant guaranteed payment on demand of all monies provided that the total sum recoverable exclusive of interest was limited to the sum of RM140,000. As the defendants had failed to pay on demand the accrued sum of RM116,645 as the principal, RM41,656.58 as interest at 12.5% per annum with monthly rests from 1 April 1993 making a total of RM165,168.74, the plaintiff issued out the said writ and proceeded by way of an O 14 application for summary judgment.

In its stateme