Tuanku Jaafar must pay debt in landmark trial
The Special Court which was set up to hear cases involving royalty today ordered the Yang Dipertuan Besar of Negeri Sembilan, Tuanku Ja'afar Tuanku Abdul Rahman, to pay US$1 million to Standard Chartered Bank Malaysia Berhad (SCBMB) after ruling that Tuanku Ja'afar has to honour the terms in a letter of credit, ended a centuries-old tradition shielding the country's royal sultans from legal prosecution.
The case brought by Standard Chartered Bank against Tuanku Jaafar Tuanku Abdul Rahman was the first trial involving a Malaysian monarch since a 1993 constitutional amendment dissolved the immunity of state rulers from criminal and civil lawsuits.
"This would be an ordinary case but what is exceptional is that it involves a ruler," the bank's lawyer, Robert Lazar said.
Chief Justice Tun Abdul Hamid Mohamad, who sat with Chief Judge of Malaya Tan Sri Alaudin Mohd Sheriff, Chief Judge of Sabah and Sarawak Tan Sri Richard Malanjum, and Federal Court judges Datuk Arifin Zakaria and Datuk Zulkefli Ahmad Makinudin unanimously allowed the bank's suit against the former king.
The court also dismissed Tuanku Ja'afar's counter-suit against the bank for a declaration that the bank was not entitled in law to uplift his fixed deposit to settle the sum of US$1 million.
The suit arose after Tuanku Ja'afar, on or about Feb 12, 1999, established through SCBMB a standby letter of credit valued at US$1 million made in favour of the Connecticut Bank of Commerce (CBC) in the United States for credit facilities to be extended to a US company called Texas Encore LLC (TEC).
According to the bank's counsel, Robert Lazar, the bank was entitled to withdraw the said amount from Tuanku Ja'afar fixed deposit.
Tuanku Jaafar, the 86-year-old royal head of southern Negri Sembilan state, served as Malaysia's constitutional monarch between 1994 and 1999 in a unique system that allows nine hereditary state rulers to take turns being king for a five-year term.
Malaysia's monarchy has a largely ceremonial role but it commands wide public respect, particularly among the ethnic Malay Muslim majority, who regard the king as the supreme upholder of Malay tradition and the symbolic head of Islam.
Sultans had long remained above the law until the government made dramatic changes in the constitution in 1993 following a state ruler's alleged assault of a hockey coach. However, Standard Chartered's 2005 lawsuit marked the first successful attempt to take a ruler to trial.
Lazar said Tuanku Jaafar cannot appeal the verdict and Standard Chartered will be able to recover the payment from the ruler's bank deposits.
Tuanku Jaafar's legal representatives could not immediately be contacted.
The suit surfaced after Standard Chartered paid the Connecticut bank $1million for credit provided to a U.S. tire rubber firm in a deal arranged by Tuanku Jaafar. Standard Chartered said the ruler had to reimburse the bank, but Tuanku Jaafar's lawyers said the king tried to revoke the contract and refused to pay the debt.
The case brought by Standard Chartered Bank against Tuanku Jaafar Tuanku Abdul Rahman was the first trial involving a Malaysian monarch since a 1993 constitutional amendment dissolved the immunity of state rulers from criminal and civil lawsuits.
"This would be an ordinary case but what is exceptional is that it involves a ruler," the bank's lawyer, Robert Lazar said.
Chief Justice Tun Abdul Hamid Mohamad, who sat with Chief Judge of Malaya Tan Sri Alaudin Mohd Sheriff, Chief Judge of Sabah and Sarawak Tan Sri Richard Malanjum, and Federal Court judges Datuk Arifin Zakaria and Datuk Zulkefli Ahmad Makinudin unanimously allowed the bank's suit against the former king.
The court also dismissed Tuanku Ja'afar's counter-suit against the bank for a declaration that the bank was not entitled in law to uplift his fixed deposit to settle the sum of US$1 million.
The suit arose after Tuanku Ja'afar, on or about Feb 12, 1999, established through SCBMB a standby letter of credit valued at US$1 million made in favour of the Connecticut Bank of Commerce (CBC) in the United States for credit facilities to be extended to a US company called Texas Encore LLC (TEC).
According to the bank's counsel, Robert Lazar, the bank was entitled to withdraw the said amount from Tuanku Ja'afar fixed deposit.
Tuanku Jaafar, the 86-year-old royal head of southern Negri Sembilan state, served as Malaysia's constitutional monarch between 1994 and 1999 in a unique system that allows nine hereditary state rulers to take turns being king for a five-year term.
Malaysia's monarchy has a largely ceremonial role but it commands wide public respect, particularly among the ethnic Malay Muslim majority, who regard the king as the supreme upholder of Malay tradition and the symbolic head of Islam.
Sultans had long remained above the law until the government made dramatic changes in the constitution in 1993 following a state ruler's alleged assault of a hockey coach. However, Standard Chartered's 2005 lawsuit marked the first successful attempt to take a ruler to trial.
Lazar said Tuanku Jaafar cannot appeal the verdict and Standard Chartered will be able to recover the payment from the ruler's bank deposits.
Tuanku Jaafar's legal representatives could not immediately be contacted.
The suit surfaced after Standard Chartered paid the Connecticut bank $1million for credit provided to a U.S. tire rubber firm in a deal arranged by Tuanku Jaafar. Standard Chartered said the ruler had to reimburse the bank, but Tuanku Jaafar's lawyers said the king tried to revoke the contract and refused to pay the debt.
Labels: Malaysia
posted by Ah Yun Wong at
7:36 PM
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