The High Court will decide on Monday whether a government body can sue for defamation in a suit by the Federal Land Development Authority (Felda) and its investment company against former deputy land and cooperatives minister Dr Tan Kee Kwong.

Justice Zabariah Mohd Yusof set the date after hearing submissions from both parties today.

At the outset, counsel Ranjit Singh, representing Tan, raised a preliminary issue for the court to decide whether a government or public body may bring an action for defamation.

Today had been set for the hearing of the suit filed by Felda and Felda Global Ventures Holdings Sdn Bhd against Tan over an article published in the Suara Keadilan newspaper last year.

With this development, the court will have to decide on the issue before proceeding with the trial.

In his submissions, Ranjit, citing a case in England, said that the common law of England would not allow government authorities to sue for defamation.

   

Ranjit submitted that many countries had adopted the England case, and that Malaysia should follow the example of most of the progressive democratic countries.

He said that Felda and its investment company were set up to carry out land development projects and related activities to stimulate economic and commercial development. There was, therefore, no doubt that Felda is a government body.

He said the court decision would be a landmark ruling as this was the first time the issue was raised in court.

‘England case not binding in Malaysia’

Counsel Firoz Hussein Jamaluddin, acting for Felda and its investment company, countered that the England case was not binding in Malaysia and was, in any event, distinguishable from this case.

He contended that both the plaintiffs had legal capacity to bring the action for defamation and malicious falsehood under Malaysian law.

Firoz submitted that there was no Malaysian case which stated that a statutory body cannot maintain an action for defamation.

Firoz said that Section 15(1) of the Land Development Act expressly gave Felda the right to sue and be sued, and that only Parliament can take away or limit that right.

On Jan 25, Felda and its investment company filed the suit saying that the defamatory words were published in a front-page article headlined “ Kontroversi ”.

The article continued on page three under the heading “ Bina bangunan RM662 juta hanya libatkan tiga individu ”.

They claimed that the article slandered them since the words implied that the acquisition and construction of Menara Felda in the Golden Triangle in Kuala Lumpur would benefit their associates.

They added that the words implied the transaction of the Felda building had caused losses and that that the terms of the agreement were dubious.

They said the defamatory words were serious and scandalous and caused them to be held in contempt and odium by the public.

They are seeking RM200 million in damages as well as an injunction to restrain Tan from making such comments in the future.

- Bernama