JUDGMENT

Mohd. Yusoff Mohamed SCJ:

This appeal is against the decision of the learned Judge granting an O. 14 judgment to the plaintiff/respondent and holding that there is no bona fide triable issue raised by the defendants/ appellants in their defence.

The claim arose from a loan agreement dated 4 September 1985 whereby the plaintiff agreed to lend RM6 million to the 1st defendant for the purpose of restructuring the borrowers' group borrowings and out of this sum, RM1.5 million was to be used for the purpose of working capital - Clause 5.01 (ii) of the agreement. The remaining defendants were the guarantors.

The amended statement of claim averred that in breach of the agreement the defendants failed to pay the interest due pursuant to Clause 7.01 of the agreement and whereupon on 13 May 1987 the plaintiff demanded repayment of the principal loan and interest thereon.

The relevant part of the letter of demand states:

In view of your default in the payment of interest and the bad conduct of your accounts with our clients, we are now instructed to terminate the loan agreement and demand the payment of loan disbursed and the interest due thereon amounting to RM5,766,963.10 due as at