Rajah J

(delivering the judgment of the Court): This appeal arises from a judgment of D'Cotta J., dated July 3, 1980, dismissing a claim by the appellants (plaintiffs) against the respondent (4th defendant) for the sum of $2,520,198.91 together with interest thereon on a guarantee dated April 18, 1974 by the 4th defendant in favour of the plaintiffs.

The plaintiffs' claim against the 1st defendant, the borrower, was for the sum of $2,520,198.91 with interest thereon at 8% per annum, due and owing by the 1st defendant in respect of overdraft facilities extended by the plaintiff bank to the 1st defendant. The claim against the 2nd, 3rd and 4th defendants arose out of three separate guarantees executed by each of them guaranteeing the due payment by the 1st defendants to the plaintiffs of moneys owing in respect of the said overdraft facilities.

In March 1973 the 2nd defendant agreed to purchase from Tomlinson Pte. Ltd. for about $2.7 million 40,523 sq. ft. of land and bungalow erected thereon and in a dilapidated condition known as No. 10 Tomlinson Road (No. 10), which was then zoned residential on the Master Plan. He was able on his own to pay the 10% deposit on the purchase price b