Friday October 30, 2009
Court: MB need not pay RM66.7mil to bank for now
KUALA LUMPUR: Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim succeeded in his application to suspend a court order to pay Bank Islam Malaysia (BIMB) RM66.7mil — pending the trial of his suit against the bank.
High Court Justice Rohana Yusuf handed down her ruling in chambers after hearing submissions from both parties yesterday.
The hearing for Khalid’s suit against the bank has been fixed for February next year.
Representing him was counsel Malik Imtiaz Sarwar, while lawyer Ganesan Nethi acted as counsel for the bank.
On Aug 21, the High Court ordered Khalid to pay the amount to the bank for a loan taken to buy shares in Guthrie in 2001. He was the chief executive officer of the company then.
The court had allowed the bank’s application for a summary judgment.
Khalid has also filed an appeal against the order at the Court of Appeal but no date has been fixed.
The Mentri Besar filed the suit on May 18, 2007, claiming there was a wrongful sale of his shares in Guthrie under an AlBai Bithaman Ajil (BBA) loan facility dated April 30, 2001.
He is seeking a declaration that there was a collateral contract between him and the bank relating to the BBA loan facility.
He also wanted a declaration that the BBA facility — in isolation and without the collateral contract — was null and void; and that Bank Islam had breached the collateral contract and the BBA facility.
BIMB filed a counter suit to recover the amount on May 24, 2007, claiming that the BBA agreement had been breached following Abdul Khalid’s failure to repay the loan.
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