Wednesday, March 03, 2010

Selangor MB wins appeal in RM66m suit

The Court of Appeal today have set aside a summary judgment entered against Selangor Menteri Besar Khalid Ibrahim forcing him to repay more than RM66 million loan to Bank Islam.

Justice Zainun Ali, who leads a three-member panel, ordered the case over Khalid's purchase of Guthrie Bhd shares when he was the chief executive officer to go for a full trial.

"The court is of the view that under Islamic banking principles, opinion should be gained from Islamic jurists over the precepts of Islam over the legality of the transaction," she said.

"Hence, the matter should have gone through a full trial," she said. "Given this, the court dismiss the order of the High Court decision dated Aug 21, 2009.”

The High Court, which had yesterday fixed four days beginning March 15 to hear Khalid's suit against Bank Islam, will now have to consolidate the hearing to include Bank Islam's counter claim against Khalid.

On Aug 21, 2009, Abdul Khalid was ordered by the court to pay RM66.67 million to Bank Islam for an Islamic loan that he had taken to buy shares in Guthrie.

news courtesy of Malaysiakini

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