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Wednesday 15 October 2008

Court orders NS ruler to pay US1million to bank

PUTRAJAYA, Oct 15 - 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 (RM3.4million) to Standard Chartered Bank Malaysia Berhad (SCBMB) after ruling that Tuanku Ja'afar has to honour the terms in a letter of credit.

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 U.S 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. - Bernama

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