29 November 2016

Lawsuit by 770 Felda Settlers Dismissed by Kuantan High Court

The Kuantan High Court on 16 November 2016 has dismissed a lawsuit initiated by 770 Felda settlers against Felda and its subsidiary Felda Palm Industries Sdn. Bhd. over alleged fraud and breach of trust.

Justice Datuk Seri Mariana Yahya held that throughout the 51 days trial, the plaintiffs failed to prove that the defendants had violated the conditions in the contract or committed breach of trust.

Citing that the claim was time-barred as well as a lack of credibility in the plaintiffs’ witnesses as a key determining factors, Justice Datuk Seri Mariana Yahya stated in her 69-page judgment that “there is no conclusive proof that the plaintiffs’ witnesses had been given authority to represent and give evidence for all the parties involved in this case.”

The court further ordered the plaintiffs to pay RM300,000 in damages to the defendants.

Filed in April 2012 by Felda settlers from Felda Chini and Felda Chini Timur in Pekan, the claim which was reported to be valued at RM422 million was brought against Felda and Felda Palm Industries Sdn. Bhd. alleging among others that the defendants had been undergrading the quality of their palm oil for 17 years.

Dato’ Firoz Hussein Ahmad Jamaluddin who heads the litigation and alternative dispute resolutions practice group at Zaid Ibrahim & Co. (a member of ZICO Law) acted as counsel for the defendants, Felda and Felda Palm Industries Sdn Bhd in this matter.

Read more here.