JUDGMENTBY: LEE HUN HOE CJ (BORNEO)

(delivering the judgment of the court): We allowed the appeal with costs here and the court below. We stated we would give our reasons later. We do so now.

On 11 June 1982 the plaintiffs and the defendants entered into an agreement whereby the plaintiffs agreed to build for the defendants 26 units of double-storey terrace houses and 29 units of single-storey terrace houses in Lot No 3405 at Mukim of Assam Kumbong, Perak for $ 1,762,000. The plaintiffs erected and completed all the houses. The plaintiffs alleged as follows. On 3 July 1985 the parties agreed that the defendants would pay the plaintiffs interest on the balance still remaining unpaid from 1 November 1983 at 1.5% per month until payment in full of the balance. The plaintiffs claimed that the defendants owed $ 135,964.22 being balance of contract price and interest. In part payment of the above sum the defendants gave the plaintiffs three cheques totalling $ 25,000. These cheques when presented were dishonoured. The plaintiffs sued the defendants. The summons were said to be served on the defendants on 8 November 1985. No appearance having been entered by the defendants the plain