JUDGMENT

KN Segara J:

The plaintiff's cause of action in defamation arises from certain statements appearing in a police report made on 1 September 1993 by the defendant. The defendant is a director and shareholder of Sey Hoe Sdn. Bhd. The collective equity ownership of the defendant, together with his brothers and Alor Janggus Soon Seng Sdn. Bhd., in Sey Hoe Sdn. Bhd. is 43.75% (according to the report).

The 1st plaintiff is an advocate & solicitor practising under the name of Hoe & Ahmad Zaki, in partnership with the 2nd plaintiff.

The 1st plaintiff is furious over the police report because the defendant has made groundless allegations that the 1st plaintiff has parted with 682,500 original share certificates in MGR Corporation, belonging to Sey Hoe Sdn. Bhd., to Lim Chin Teik, the managing director of Sey Hoe Sdn. Bhd.

Lim Chin Teik is a friend of the 1st plaintiff. The 1st plaintiff was acting as the solicitor for the vendor, Sey Hoe Sdn. Bhd., and prepared the sale and purchase agreement of the shares set out in the agreement dated 1 September 1992 (p. 1, Bundle B) and the supplemental agreement dated 1 November 1992 (p. 5, Bundle B). The 1st plaintiff only took instruction