Monday, December 19, 2005

Court dismisses suit against ex-RHB boss

KUALA LUMPUR: A suit by RHB Capital Bhd seeking the return of an alleged RM20mil gratuity payment from its founder Tan Sri Rashid Hussain was thrown out by the High Court yesterday.

The company, in an immediate response, announced to Bursa Malaysia that it would be appealing against the decision. It has 30 days to file a notice of appeal.  

In her judgment, Justice Zainun Ali ruled that the claim was without basis.  

?The RM20mil was not paid by RHB Capital but was lawfully paid and borne by RHB Securities Sdn Bhd under a service contract approved by the board and its shareholders,? said the judge who dismissed RHB Capital?s suit with costs.

RHB Capital claimed that the payment was unlawful and Rashid was liable to repay the purported gratuity to the company as he was holding the purported gratuity in trust for the company.

Rashid had denied owing the sum. He was in court yesterday and said after the judgement: ?I am relieved that this has cleared my name.?  

Remark: The world is going crazy.

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