Thursday, August 20, 2009

Khalid Ibrahim ordered to pay RM66.67mil

Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim was ordered by the High Court here to pay RM66.67mil to Bank Islam Malaysia for a loan he took to purchase Guthrie shares in 2001 when he was the company's chief executive officer.

Justice Datuk Rohana Yusuf, who made the order in chambers on Friday, however, granted Khalid's application for an interim stay of execution pending a formal stay application on Sept 16.

Khalid's counsel, Malik Imtiaz Sarwar, told reporters that Rohana allowed Bank Islam's application for a summary judgment on grounds that the case need not enter into a full trial as there were no triable issues.

A summary judgment is a final decision by a judge which resolves a lawsuit in favour of one of the parties. A motion for summary judgment is made after discovery is completed but before the case goes to full trial.

Malik Imtiaz said an appeal would be lodged with the Court of Appeal against today's outcome as he felt the matter should go before a full trial. He said he would file a proper stay application by next week.

The court fixed Sept 16 to hear the formal stay application and to mention Khalid's suit against Bank Islam.

The bank countersued Khalid on May 24, 2007, claiming that Khalid had breached its contract in the Al BaiBithaman Ajil (BBA) loan agreement in the purchase of Guthrie shares.

Khalid initiated a suit against the bank on May 18, 2007, seeking damages and a declaration that there existed a collateral contract between him and bank with the said loan agreement dated April 30, 2001.

He also wanted a declaration that the BBA facility, in isolation and without the collateral contract, is null and void and that Bank Islam had breached the collateral contract and the BBA facility.

Khalid was not present in court while Bank Islam was represented by senior counsel Tommy Thomas.

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