Lenggeng assemblyperson Ishak Ismail obtained a stay from the High Court in Seremban today on the bankruptcy order served on him, which may well avert a by-election for his seat.

Following this, the bankruptcy order against Ishak is now suspended and the parties will return to the court on July 23 with a view to settling the matter amicably.

“The stay or suspension of the order was granted by Justice Kamaludin Md Said, with a view to settle it,” Ishak's lawyer CS Murthi told Malaysiakini .

A settlement of the suit will prevent the seat from being declared vacant, for a person who is a bankrupt cannot hold an elected seat, whether in a state assembly or in Parliament.

The other party, businessman Misran Sukadi, was represented by lawyer Francis Peters.

On March 18, Ishak was declared a bankrupt for being a guarantor for a RM2 million loan, paving the way for a possible by-election.

The order declaring Ishak a bankrupt was made by the Seremban High Court on March 18 and Ishak is said to have received the order on April 27.

On May 14, Murthi applied to rescind the bankruptcy order.

The 64-year-old controversial politician was reported to have said it was obvious that his creditor's intention was to embarrass him, instead of collecting the payment.

As the guarantor, Ishak claimed, he has paid off RM1.2 million out of a total of RM2 million borrowed by a contractor who failed to service the loan.

It was also reported that Prime Minister Najib Abdul Razak, wanted a fast resolution to the matter and had roped in his former political-secretary, Shahlan Ismail, to settle the matter.

Ishak is known for his wily speeches, having in 2009 held a no-holds-barred speech at the Umno general assembly that saw recordings of it being sold like hot cakes.

He had then targeted various leaders, including Najib, Deputy Prime Minister Muhyiddin Yassin and Home Minister Ahmad Zahid Hamidi.

As for Zahid, Ishak noted how the minister had a poor command of the English language in his younger days and had said "two zero dollars" instead of "twenty dollars".