The High Court today ordered Selangor Menteri Besar Khalid Ibrahim to pay Bank Islam RM66 million (US$18.521 million) for a loan he took in 2001 to purchase Guthrie Bhd shares.

Justice Rohana Yusof's ruling was a summary judgment - meaning that it was made without the matter being heard in a full trial, but she allowed for an interim stay pending an appeal.

This would mean Khalid would not have to immediately pay the amount until he has exhausted all his appeal avenues.

The decision was made by Rohana in chambers.

kl bar judiciary forum 241007 malik imtiaz Khalid's lawyer Malik Imtiaz Sarwar ( right ) said an appeal will be made as he felt the matter should go before a full trial.

"We will file a proper stay application early next week," said Malik who was assisted by Patrick Thomas and Asma Mohd Yunus.

"We will also file an appeal as we felt that the matter should have gone through a full trial as it involves new issues regarding Syariah laws when the loan was taken

"The appeal over today's decision will be heard at the Court of Appeal," added Malik.

'It was the bank that breached contract'

Bank Islam was represented by Tommy Thomas ( below ). In February, Thomas had submitted there were non-triable issues as Khalid, the former Guthrie CEO had breached a contract in the Al Bai-Bithaman Ajil (BBA) loan agreement in the purchase of Guthrie shares.

Malik Imtiaz had on the other hand denied any default in the BBA facility as alleged by Bank Islam and asked that the matter go to trial.

perak state govt crisis 030309 tommy thomas "Khalid contends that it was Bank Islam who is in breach of contract and its facility by calling and declaring the event a default, when there is no default."

"We are taking a position that this matter should not be disposed but should be investigated properly in a hearing as it involves complex issues of law and fact.

"The court should investigate the wrongful sale of Khalid's Guthrie shares by Bank Islam under the facility that resulted in him sufferring loss and damage," said Malik.

The bank had filed the suit against Khalid on May 27, 2007 over his alleged breach of contract in failing to repay US$18.521 million loan.

No date yet for Khalid's claims

Rohana fixed Sept 16 to mention the stay application as well as to fix a date for Khalid's counter-claim.

khalid ibrahim on klang bas terminal 090109 04 Khalid ( right ) had filed a suit against the bank on May 18, 2007 seeking:

  • a declaration that there existed a collateral contract between Khalid and the bank on the Bai-Bithamin Ajil (BBA) loan agreement.
  • a declaration that the BBA facility in isolation and without collateral contract was null and void.
  • a declaration that Bank Islam had breached the collateral contract or the BBA facility and
  • general damages, following breach of the collateral contract and the wrongful sale of Bank Islam of Khalid's Guthrie shares charged under the BBA.