updated version

In a surprise turn of events, the Attorney-General's chambers today withdrew its controversial sedition charge against prominent lawyer Karpal Singh on grounds of "public interest".

The move, in what appeared to be one of Abdul Gani Patail's first official decisions as attorney-general, was conveyed to the High Court this morning when the court sat to hear the case.

"Today, having reconsidered the circumstances and the representations, and taking into consideration the public interest, the public prosecutor is of the view that it is appropriate to exercise his discretion to discontinue and withdraw the charge against Karpal Singh," said Abdul Gani, who was appointed to the post on Jan 1.

Following this, justice Augustine Paul discharged and acquitted Karpal. The matter was originally fixed for hearing before the High Court judge for the rest of the week.

However, Paul directed that Karpal be referred to the Malaysian Bar's disciplinary board for allegedly making contemptuous statements against the judge at the onset of the hearing today.

"Biggest insult"

Karpal had applied that various foreign law organisations be allowed to be present to observe the judge during the trial, citing criticisms made by the Federal Court last year against Paul in the manner the judge handled Zainur Zakaria's contempt of court matter.

Karpal said the Federal Court had found that Paul's conduct during the contempt proceedings was more of a prosecutor than a judge. "The Judiciary should not be afraid of being the subject of observation. Your Lord have been found by the Federal Court to be more of a prosecutor...rightly, you should be tribunalised," said Karpal.

To this, Paul said that Karpal's statement was contemptuous and was an attack on the judge's impartiality.

"This is the biggest insult on the Judiciary. I cannot tolerate that," added Paul.