Zakaria Yatim J

This is an appeal by the plaintiff against the decision of the senior assistant registrar given on 24 August 1988, ordering that their application for summary judgment against the second defendant be dismissed with costs.

There are three defendants in this suit. The first defendant, a limited company, was granted an overdraft facility for $1,600,000 by the plaintiff for a period of two years, vide a letter of approval dated 14 December 1987. By a letter of guarantee dated 18 December 1978 the second and third defendants jointly and severally guaranteed the repayment of the overdraft facility to the plaintiff.

The second defendant, in his statement of defence, admits executing the letter of guarantee. He avers that by reason of the first defendant's default in repaying the loan by 31 December 1980 the said guarantee became effective and enforceable, but since the period of limitation had expired sometime before 31 December 1986 the said guarantee ceased to be binding or enforceable against him. According to him the letter of guarantee is null and void and unenforceable. In his affidavit affirmed on 12 August 1988 the second defendant states:

I admit being a guarantor