Published: Wednesday March 3, 2010 MYT 3:37:00 PM
Selangor MB succeeds in appeal against RM66.7mil ruling
PUTRAJAYA: The Court of Appeal has dismissed a High Court summary judgement ordering Selangor Mentri Besar Tan Sri Abdul Khalid Ibrahim to pay Bank Islam Malaysia Berhad (BIMB) RM66.7mil pending the hearing of his suit against the bank.
Khalid is suing BIMB for alleged wrongful sale of his shares in Guthrie Berhad. The Kuala Lumpur High Court has set four days from March 15 to hear the suit.
On Aug 21, 2009, Abdul Khalid was ordered by the court to pay RM66.67mil to BIMB for an Islamic loan that he had taken to buy shares in Guthrie in 2001, when he was its chief executive officer, after the court allowed the bank’s application for a summary judgment.
However, the court granted Abdul Khalid’s application to suspend the order pending the trial.
Abdul Khalid then appealed against the order which was by the Court of Appeal on Wednesday.
Abdul Khalid initiated a suit against the bank on May 18, 2007, claiming that there was a wrongful sale of his shares in Guthrie under an Al-Bai 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.
Abdul Khalid, who was CEO of Guthrie from 1995 to 2003, is also seeking damages from BIMB, claiming that the bank had sold his shares in Guthrie.
BIMB filed a countersuit to recover the amount of RM66.67mil on May 24, 2007, claiming that the BBA agreement had been breached following Abdul Khalid’s failure to repay the loan.
More to come
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