KUALA LUMPUR: The High Court has disallowed an application by Tan Sri Tajudin Ramli, the former major shareholder of Malaysian Airline System Bhd (MAS), to adjourn all cases involving him and various parties to facilitate an “out of court” settlement.
The High Court’s decision to go ahead with the civil proceedings involving Tajudin has been described by some in the legal fraternity as another move that demonstrates the independence of the judiciary. It paves the way for the hearing of one of Malaysia’s most awaited civil suits that has dragged on since 2006.
More importantly, the High Court’s decision to proceed, to some extent, lifts the cloud of uncertainty on the possibility that the civil suits between Tajudin and various parties — some 52 cases at least in the Court of Appeal and High Court — will be settled “out of court” as advocated by the government and ministry of finance in a letter issued last August.
In disallowing Tajudin’s application, the special officer to Judge Datuk Zaharah Ibrahim stated that case management for all suits in the High Court involving the once high-flying corporate figure fixed for March 8, 2012, would go ahead as scheduled.
Tajudin, via legal firm Lim Kian Leong & Co, had also applied to the Court of Appeal to adjourn “all relevant cases” to enable settlement of the cases to be finalised out of court.
The application to the Court of Appeal was made on Jan 27 while the application to the High Court was made on Jan 30. The High Court came back with an answer the following day.
Based on the High Court’s decision to disallow an adjournment, lawyers are awaiting in anticipation that the Court of Appeal will also proceed with the case between Tajudin and Pengurusan Danaharta Bhd (Danaharta) that has been scheduled for hearing from Feb 13 to 15. There are several other cases tied to this suit at the Court of Appeal.
The case before the Court of Appeal follows a decision in the High Court on Dec 7, 2009 whereby the judge ordered Tajudin to pay Danaharta a sum of RM589.14 million with interest at 2% per annum above the base lending rate of Malayan Banking Bhd, back-dating it to Jan 1, 2006.
Tajudin filed an appeal with the Court of Appeal on Jan 4, 2010. After case management in October, it was fixed for hearing before Tan Sri Md Raus Sharif from Feb 13 to 15.
In the application to the Court of Appeal, Tajudin stated that he has been requested by Danaharta, which is the main plaintiff in the civil suits against him to seek for an adjournment of “all relevant” cases to enable settlement of the cases to be finalised “out of court”.
It further stated that the reason Danaharta requested Tajudin to apply for “all relevant cases” be adjourned, was that the co-ordination of the many cases had yet to be finalised.
“As requested by Danaharta, we therefore respectfully seek Yang Amat Arif’s indulgence to adjourn all relevant cases involving Tan Sri Tajudin Ramli, including the appeals which have been fixed from Feb 13 and all High Court matters so that the settlement process can be finalised.
“We are instructed that Danaharta will instruct its own lawyers to confirm the request for adjournment shortly, but due to the urgency has requested our client to make this request to Yang Amat Arif immediately,” the application stated.
The managing director of Prokhas Sdn Bhd, Fazlur Rahman Ebrahim, could not be contacted for comments. Prokhas, which is owned by the finance ministry, has taken over the residual assets of Danaharta and its role in the legal suits.
Tommy Thomas, the lawyer for Danaharta, declined to comment when contacted.
Among those who have filed suit against Tajudin are Danaharta, Telekom Malaysia, Celcom (M) Bhd, CIMB, Naluri Corp Bhd, Atlan Holdings Bhd and MAS.
Tajudin, one of the coterie of bumiputera businessman close to former finance minister Tun Daim Zainuddin, was formerly the largest shareholder in MAS and controlled Celcom via Naluri Bhd. He took up a RM1.79 billion loan in 1994 to purchase a 32% stake in MAS from the government.
Like most others, he was hit by the 1997/1998 Asian financial crisis. In 2001, he sold MAS back to the government at RM8 per share, a decision that did not go down well with the public.
Former prime minister Tun Dr Mahathir Mohamad was the premier then, and Daim was recalled to public service due to the financial crisis.
Tajudin defaulted on the loans taken to purchase MAS and Danaharta filed a suit against him in 2006, seeking RM589.14 million with interest. He filed a counter suit claiming RM13.46 billion from some 22 parties and individuals.
It was not only the massive sum of RM13.46 billion that caught the public’s eye. What was more interesting was that in his extensive affidavit supporting his counter-claim, Tajudin revealed a lot of the inner-workings behind the purchase of MAS and contended that he was instructed by Dr Mahathir and Daim to take over the national carrier.
He also claimed that there was an over-riding agreement protecting him from liabilities. Dr Mahathir has denied giving such instructions.
The case against Tajudin took a twist in August 2011 when the litigants in the various suits, including MAS, were told that the government and the ministry of finance had agreed that all suits against Tajudin be withdrawn for it to be settled out of court.
The litigants, in a letter signed by Minister in the Prime Minister’s Department Datuk Seri Mohamed Nazri Abdul Aziz, were told to hand over their cases to a legal firm, Hasfarizam Wan & Aisha Mubarak, a firm that acts for Umno.
Nazri had claimed then that the move to settle out of court would save the government billions. But it is believed that this is something that not all the litigants are in concurrence.
This article appeared in The Edge Financial Daily, February 2, 2012.
The High Court’s decision to go ahead with the civil proceedings involving Tajudin has been described by some in the legal fraternity as another move that demonstrates the independence of the judiciary. It paves the way for the hearing of one of Malaysia’s most awaited civil suits that has dragged on since 2006.
More importantly, the High Court’s decision to proceed, to some extent, lifts the cloud of uncertainty on the possibility that the civil suits between Tajudin and various parties — some 52 cases at least in the Court of Appeal and High Court — will be settled “out of court” as advocated by the government and ministry of finance in a letter issued last August.
In disallowing Tajudin’s application, the special officer to Judge Datuk Zaharah Ibrahim stated that case management for all suits in the High Court involving the once high-flying corporate figure fixed for March 8, 2012, would go ahead as scheduled.
Tajudin, via legal firm Lim Kian Leong & Co, had also applied to the Court of Appeal to adjourn “all relevant cases” to enable settlement of the cases to be finalised out of court.
The application to the Court of Appeal was made on Jan 27 while the application to the High Court was made on Jan 30. The High Court came back with an answer the following day.
Based on the High Court’s decision to disallow an adjournment, lawyers are awaiting in anticipation that the Court of Appeal will also proceed with the case between Tajudin and Pengurusan Danaharta Bhd (Danaharta) that has been scheduled for hearing from Feb 13 to 15. There are several other cases tied to this suit at the Court of Appeal.
The case before the Court of Appeal follows a decision in the High Court on Dec 7, 2009 whereby the judge ordered Tajudin to pay Danaharta a sum of RM589.14 million with interest at 2% per annum above the base lending rate of Malayan Banking Bhd, back-dating it to Jan 1, 2006.
Tajudin filed an appeal with the Court of Appeal on Jan 4, 2010. After case management in October, it was fixed for hearing before Tan Sri Md Raus Sharif from Feb 13 to 15.
In the application to the Court of Appeal, Tajudin stated that he has been requested by Danaharta, which is the main plaintiff in the civil suits against him to seek for an adjournment of “all relevant” cases to enable settlement of the cases to be finalised “out of court”.
It further stated that the reason Danaharta requested Tajudin to apply for “all relevant cases” be adjourned, was that the co-ordination of the many cases had yet to be finalised.
“As requested by Danaharta, we therefore respectfully seek Yang Amat Arif’s indulgence to adjourn all relevant cases involving Tan Sri Tajudin Ramli, including the appeals which have been fixed from Feb 13 and all High Court matters so that the settlement process can be finalised.
“We are instructed that Danaharta will instruct its own lawyers to confirm the request for adjournment shortly, but due to the urgency has requested our client to make this request to Yang Amat Arif immediately,” the application stated.
The managing director of Prokhas Sdn Bhd, Fazlur Rahman Ebrahim, could not be contacted for comments. Prokhas, which is owned by the finance ministry, has taken over the residual assets of Danaharta and its role in the legal suits.
Tommy Thomas, the lawyer for Danaharta, declined to comment when contacted.
Among those who have filed suit against Tajudin are Danaharta, Telekom Malaysia, Celcom (M) Bhd, CIMB, Naluri Corp Bhd, Atlan Holdings Bhd and MAS.
Tajudin, one of the coterie of bumiputera businessman close to former finance minister Tun Daim Zainuddin, was formerly the largest shareholder in MAS and controlled Celcom via Naluri Bhd. He took up a RM1.79 billion loan in 1994 to purchase a 32% stake in MAS from the government.
Like most others, he was hit by the 1997/1998 Asian financial crisis. In 2001, he sold MAS back to the government at RM8 per share, a decision that did not go down well with the public.
Former prime minister Tun Dr Mahathir Mohamad was the premier then, and Daim was recalled to public service due to the financial crisis.
Tajudin defaulted on the loans taken to purchase MAS and Danaharta filed a suit against him in 2006, seeking RM589.14 million with interest. He filed a counter suit claiming RM13.46 billion from some 22 parties and individuals.
It was not only the massive sum of RM13.46 billion that caught the public’s eye. What was more interesting was that in his extensive affidavit supporting his counter-claim, Tajudin revealed a lot of the inner-workings behind the purchase of MAS and contended that he was instructed by Dr Mahathir and Daim to take over the national carrier.
He also claimed that there was an over-riding agreement protecting him from liabilities. Dr Mahathir has denied giving such instructions.
The case against Tajudin took a twist in August 2011 when the litigants in the various suits, including MAS, were told that the government and the ministry of finance had agreed that all suits against Tajudin be withdrawn for it to be settled out of court.
The litigants, in a letter signed by Minister in the Prime Minister’s Department Datuk Seri Mohamed Nazri Abdul Aziz, were told to hand over their cases to a legal firm, Hasfarizam Wan & Aisha Mubarak, a firm that acts for Umno.
Nazri had claimed then that the move to settle out of court would save the government billions. But it is believed that this is something that not all the litigants are in concurrence.
This article appeared in The Edge Financial Daily, February 2, 2012.
