Federal Court reserves decision on Zuraida’s RM10mil bond
PKR wants the sum restored after the Court of Appeal slashed it to RM100,000.
In 2020, PKR filed a lawsuit against former Ampang MP Zuraida Kamaruddin, alleging that she breached a contractual bond by joining Bersatu following the Sheraton Move in February of the same year. The Federal Court has now reserved its decision on PKR's request to restore a RM10 million payment from Zuraida, after the Court of Appeal reduced the claim to RM100,000.
A three-judge bench, consisting of Chief Justice Wan Ahmad Farid, Sabah and Sarawak chief judge Azizah Nawawi, and Justice Azmi Ariffin, has not set a ruling date. PKR's counsel, Ranjit Singh, contends that the RM10 million sum, as originally ordered by the High Court, is reasonable, as Zuraida admitted the value conferred upon her by the party exceeded RM10 million.
The bond's operative clause set RM10 million as the amount payable in the event of a breach. Ranjit argued that the appeal turns on the legal effect of Zuraida's admission under Section 75 of the Contracts Act, which safeguards against penal or unconscionable contract clauses. He also emphasized the bond's context, citing the political climate at the time when party-changing was considered a threat to government stability.
However, Zuraida's counsel, Azhar Harun, countered that there is no distinct category of political contract exempt from Section 75 protections, and that a political party cannot exploit its power to circumvent statutory safeguards against penalty clauses. Azhar also asserted that there is an imbalance in bargaining power between parties, contending that the RM10 million bond was imposed as a condition of candidacy rather than through a negotiated agreement.
The Court of Appeal upheld the High Court's finding that Zuraida had violated the bond, ordering the RM100,000 reduction from the original RM10 million claim. PKR intends to appeal the appellate court's decision on December 11, 2024, to maintain the reduced payment amount, although it still recognizes the High Court's determination that Zuraida breached the bond terms.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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