National Association of Settlers Children (Anak) chairperson Mazlan Aliman has failed in his appeal to set aside an order to pay RM350,000 in damages to the Federal Land Development Authority (Felda) in a defamation suit.

Court of Appeal's three-member bench led by Justice Hamid Sultan Abu Bacher delivered the unanimous decision in Putrajaya this morning.

Justice Hasnah Hashim, in reading out the judgment, said: "In our view, we found that the High Court judge had applied the correct principles of law when she found there were no concluded settlement between the two parties."

The judge referred to a series of "without prejudice letters" between the two parties, during a settlement negotiation process prior to the High Court decision last year.

In upholding the High Court decision, Justice Hasnah also ordered for RM10,000 in costs to be paid to Felda.

The High Court had on May 29 last year ordered Mazlan and Angkatan Edaran Enterprise to pay RM350,000 in general and aggravated damages as well as RM150,000 costs to Felda.

In April this year, High Court judge Su Geok Yam also rejected the defendants' application to postpone payment of damages to Felda.

When met later, lawyer Nasar Khan Mirbas Khan who appeared for the appellants said they would proceed to appeal the decision at the Federal Court.

"We only had one point of appeal in that a settlement had been reached between the defendants and Felda.

"But the court today decided that no settlement has been reached," he explained.

Mazlan, meanwhile, also said his lawyers would file for an application to postpone payment of damages, pending hearing of the final appeal.

Felda had filed the defamation suit against Mazlan and the company on July 20, 2009, based on claims that a book's title implied it was an illegal money lender with an exorbitant interest rate.

Felda in its statement of claim said the book also implied that it would earn a handsome profit from various projects at the expense of settlers who were allegedly victimised by oppressive policies.