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Thursday, October 6, 2022

Court of Appeal orders NFCorp to pay RM5k cost to Public Bank

Public Bank’s legal team informed the Court of Appeal that today’s adjournment of the National Feedlot Corporation (NFCorp) appeal hearing against it was the seventh such adjournment since 2019.

The three-person bench chaired by Azizah Nawawi, while allowing NFCorp’s application to postpone the hearing due to its lead defence counsel Muhammad Shafee Abdullah being on medical leave (MC), ordered the appellant to pay RM5,000 in costs to the commercial bank.

Today was initially scheduled for a hearing of an appeal by NFCorp and four others in their civil action to hold Public Bank liable for breach of contract to safeguard the confidentiality of their bank account.

During online proceedings conducted via zoom this morning, the appellant’s counsel Sarah Malini Abishegam informed the court that Shafee was unable to attend as he is down with fever and sore throat.

She applied for a brief adjournment of the hearing as Shafee was the only counsel authorised to conduct the appeal on behalf of NFCorp, showing the court a copy of the MC from KPJ Damansara.

However, Public Bank’s counsel Yoong Sin Min then raised an objection to the adjournment bid as today amounted to the seventh postponement since the appeal was filed in August 2019.

She said they have shown to the court a chronology list of the previous adjournments, claiming that Public Bank’s legal team was already prepared for a hearing each time.

“We (Public Bank’s lawyers) were only told about Shafee’s inability to attend only this morning. There has to be some fairness to us.

“In all circumstances, I would not have objected, but due this (today) is the seventh hearing date, it is difficult to tell my client why the hearing has been adjourned,” Yoong told the bench which also comprised of judges Lee Heng Cheong and Hashim Hamzah.

Counsel Muhammad Shafee Abdullah

‘There should be alternative counsel’

Sarah countered that NFCorp’s legal team had also put in a list of the chronology of the adjournments, pointing out that the previous postponements were due to Covid-19 reasons and the movement control order in place nationwide.

She then apologised to the court while reiterating that Shafee was the only counsel authorised to conduct the appeal for NFCorp.

Azizah then asked how much costs that Public Bank is seeking for the adjournment, to which Yoong said they seek RM10,000.

Yoong also sought for the court to make this the final adjournment, and that in the event that Shafee is unable to attend proceedings again, then there should be alternative counsel to conduct the appeal for NFCorp.

When Azizah asked Sarah about the costs, the lawyer proposed costs of RM1,000.

“In view of the medical certificate of Shafee, the case is adjourned to another date. This shall be the final adjournment for this appeal.

“Order to costs of RM5,000 to the respondent (Public Bank) for today,” she said, adding that the matter shall be fixed for further case management later to fix a new hearing date.

On July 29, 2019, NFCorp, its executive chairperson Mohamad Salleh Ismail and three subsidiaries failed in their bid to sue Public Bank for breach of contract to protect their bank account confidentiality.

The Kuala Lumpur High Court on that date had dismissed the suit by the five plaintiffs.

Besides NFCorp and Salleh, the other three plaintiffs are National Meat and Livestock Corporation Sdn Bhd, Agroscience Industries Sdn Bhd and Real Food Company Sdn Bhd.

Judge Su Geok Yiam ruled that the plaintiffs failed to prove the case against the bank on the balance of probabilities.

"Therefore, the suit against the defendant (Public Bank) is dismissed with cost,” she said and ordered the plaintiffs to pay RM350,000 in costs to the bank.

On May 22, 2012, NFCorp, Salleh and the three subsidiary companies filed a civil action against Public Bank.

They claimed that their business reputation and credibility had incurred irreparable loss and damage as a result of the security breach of the Banking and Financial Institutions Act 1989 (Bafia) by the bank.

The plaintiffs claimed that their leaked bank account information was used by then PKR vice-president Rafizi Ramli (who is now party deputy president) to bolster allegations that they had leveraged a government loan to buy eight KL Eco City properties.

Back on April 21 this year before the Federal Court, NFCorp and Salleh failed in a separate appeal involving a defamation suit against Rafizi.

The apex court ruled that Rafizi successfully raised the defence of fair comment to defeat the defamation action, which was over allegations of misuse of government funds.

In 2019, the Attorney-General’s Chambers withdrew its appeal against Rafizi's acquittal in a related criminal case involving NFCorp and the Banking and Financial Institutions Act 1989 (Bafia). - Mkini

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