Just World president Chandra Muzaffar has retracted a defamatory remark made in 2008 against Anwar Ibrahim, which had resulted in a news report entitled ‘Disaster if Anwar is PM’ being published a few days before the 12th general election.

The Kuala Lumpur High Court has recorded a consent judgment between the two, concluding Anwar’s RM10 million defamation suit against Chandra.

Chandra, Anwar and his wife Dr Wan Azizah Wan Ismail were present in court today.

When contacted, Anwar's lawyer Latheefa Koya (right) said the consent judgment was recorded by Justice Nik Hasmat Nik Mohamad, who made no order as to damages or costs.

She said Chandra's lawyer Firoz Hussein Ahmad Jamaluddin had agreed to the retraction of the statement by his client.

Anwar had filed the suit in 2008 following Chandra's remarks at a public forum organised at Menara Star in Petaling Jaya and which was reported by Star on March 5, 2008.

Chandra (right) , a former PKR deputy president, had claimed that "Anwar in his dealings with the Kampung Rawa clash between Hindus and Indian Muslims in Penang had said that he would make sure the temple bell would not ring in the country any more if his dictum was not accepted".

Anwar’s legal team maintained that this inferred he “was and is promoting and inciting racial hatred amongst the races in Malaysia” and had committed criminal offences of sedition.

It further meant that he was “deceiving the public” with his multi-racial attitude and that he is now "speaking differently" from when he was in government.