JUDGMENT

Richard Malanjum JCA:

On 10 February 2003 we dismissed the appeal of the appellant/defendant ('appellant') against the decision of the High Court allowing the application of the respondent/plaintiff ('respondent') to enter final judgment pursuant to O. 14 of the Rules of the High Court 1980(RHC).

In coming to our decision we indicated that we would give our reasons later. We do so now.

In its statement of claim the respondent prayed for the following:

i. the sum of RM2,929,452.05;

ii. interest at the rate of 15% per annum on the sum of RM2,500,000 from 17 September 1997 to date of full payment;

iii. costs;

iv. such other order or relief as deemed fit.

The appellant filed his defence on 20 February 1998 denying any liability and asserted that the purported agreement was a sham and thus the respondent should be estopped from relying on it. And the appellant averred,inter alia, that he did not obtain the advance for himself but only as a conduit for the respondent in its quest to ensure the increase in the cash flow of a company called the Labuan Securities Sdn. Bhd. ('the company') in which the respondent had 28.78% equity interest. It was further asserted by the appellant t