PUTRAJAYA (Aug 18): Tan Sri Halim Saad’s bid to revive a 2023 lawsuit — over his failed 2001 attempt to buy a 32.69% stake in Renong Bhd and take over United Engineers Malaysia Bhd — was rejected by the three-member bench Court of Appeal on Monday.
Halim had sought to revive his lawsuit against the government, ex-prime minister Tun Dr Mahathir Mohamad, and then special economic adviser to Mahathir, Tan Sri Nor Mohamed Yakcop, claiming his constitutional rights under Articles 13(1)(2) and 8 were violated. Article 13(1) concerns rights to property while Article 8 is with regards to equality and prohibition of discrimination.
Judge Datuk Supang Lian, who led the bench, dismissed the appeal, saying Halim should have raised the issue in a 2013 lawsuit he filed against Nor Mohamed and Khazanah Nasional.
In 2013, Halim filed a RM1.8 billion civil suit against the government, Khazanah Nasional and Nor Mohamed after alleging he (Halim) had been cheated. Halim fought all the way to the Federal Court, but lost in 2015.
“The principle of res judicata applies on constitutional challenges and the claim is also time-barred under the Limitation Act 1953, and this limitation period also applies in striking out of the suit under the Public Authorities Protection Act 1948. This (Halim’s) case is distinguishable with the Semantan Estate (1952) Sdn Bhd case as the government had continued to trespass (in occupying the land).
“That (Semantan case) is different from this case. This bench is satisfied that this is a plain and obvious case for the High Court to strike out the matter. There is no merit in this appeal and we dismissed the appeal,” she said.
Supang, who sat with Datuk Lim Chong Fong and Datuk Dr Alwi Abdul Wahab in the unanimous decision, ordered Halim to pay RM20,000 costs to the respondents.
Halim’s lawyer Datuk Malik Imtiaz Sarwar, along with Surendra Ananth and Yvonne Lim, tried to reinstate the suit in the High Court and refer legal questions to the Federal Court, using the Semantan case as a basis.
“My client had not been properly compensated (in having being paid) the RM165 million and this matter should have gone for a full trial and not summarily struck out, as this involves his constitutional right,” Malik said.
Senior federal counsel Ahmad Hanir Hambaly @ Arwi argued that the government had already settled the matter in 2003 by paying Halim RM165 million for the (Renong) shares, calling it a full and final settlement.
Ahmad Hanir added that based on the Mat Shuhaimi Shafiei case, constitutional challenges must be raised in the original lawsuit and cannot be brought up later in parts. He also said the Semantan case cited doesn't apply here because it involved ongoing trespass by the government, which is different from Halim's case.
The Court of Appeal upheld the High Court’s May 14, 2024 decision to strike out Halim’s suit. Judicial commissioner Dr Suzana Mohamad Said had ruled that the case was bound by legal precedent (stare decisis), referring to the Asia Commercial Finance case.
Suzana said this suit was like Halim’s 2013 case, which was already settled. She explained that under the principle of res judicata, a case can’t be tried again once decided. Also, time limits exist to prevent unnecessary lawsuits after too long.
“The transaction in this occasion took place in 2001, and the plaintiff (Halim) brought this action now, after 20 years; and earlier in 2013, as in this instant case brought forward to the court,” she added.
In August 2023, Halim, in filing the suit, claimed that Mahathir, Nor Mohamed and the government worked together to make him lose control of Renong, which also caused him to lose control of UEM and its valuable assets. He claimed this caused him financial losses and violated his constitutional rights.
The UEM-Renong deal goes back to a RM2.3 billion purchase of a 32.69% interest in parent Renong executed by UEM in 1997.
In 2001, it was reported that following public uproar, Securities Commission Malaysia compelled Halim, who was then controlling shareholder in Renong, to buy back the stake from UEM. Before this could be completed, Khazanah Nasional launched a takeover of the entire Renong group, which included UEM, for RM4 billion.