[1] This is an appeal by the defendant against the decision of the learned High Court Judge at Tawau High Court made on 23 December 2011 whereby the plaintiffs' claim against the defendant was allowed on the ground that the defendant was liable for breach of contract for its failure to disburse the financing facilities earlier granted by the defendant to the 1st plaintiff.

Brief Facts

[2] The facts of the case are as follows:

(a) On or about 6 November 2003, the 1st plaintiff applied to the defendant at its Tawau branch for loan facilities up the sum of RM1,500,000.00 for the purpose of taking over and operating a then existing prawn farm owned and operated by Panduan Era Sdn Bhd (2nd plaintiff) at Jurangan, Tawau;

(b) In support of its application for the loan facilities, the 1st plaintiff submitted to the defendant a set of supporting documents and having evaluated the documents, the defendant had on 8 March 2004 by two separate Letters of Offer to the 1st plaintiff granted the following Islamic Banking loan facilities, namely:

(1) a revolving Murabahah working capital financing to the limit of RM700,000.00; and

(2) a cash note facility in the sum of RM750,000.00;

(c) The capital financ