Kuala lumpur: The Court of Appeal today overturned a High Court ruling that had ordered former housing and local government minister Datuk Zuraida Kamaruddin and two others to pay RM50,000 in damages to DAP adviser Lim Guan Eng for defamation.

According to BERNAMA News Agency, a three-judge panel comprising Justices Datuk Seri Mohd Firuz Jaffril, Datuk Ahmad Kamal Md Shahid, and Datuk Amarjeet Singh unanimously allowed the appeals filed by Zuraida, MalaysiaNow editor Muhammad Abd Ar-Rahman Koya and MNow Media Sdn Bhd. The panel also dismissed Lim's cross-appeal, which had sought an increase in the damages awarded and ordered him to pay RM30,000 in costs.

Delivering the panel's unanimous decision, Justice Mohd Firuz stated that the article in question did not carry the defamatory meaning as alleged by Lim. 'We find that there were obvious errors in the judgment of the High Court and the judgment cannot stand,' he said, adding that the manner in which the High Court dealt with the defence was purely unsatisfactory.

Justice Mohd Firuz further observed that the High Court's assessment of the defence of justification was grounded only in documentary evidence, overlooking the actual exchanges between the two ministers during their meeting. He also noted inconsistencies in the High Court judge's findings, pointing out contradictory conclusions regarding evidence of malice.

The legal battle began on June 7, 2024, when Lim, a former Finance Minister, filed a defamation suit at the Shah Alam High Court against Zuraida, Muhammad Abd Ar-Rahman Koya, and MNow Media. Lim claimed that Zuraida had made false statements about him related to a housing project for former plantation workers in Bestari Jaya, Selangor.

In March, the High Court had ruled in Lim's favor, deeming the statements defamatory and awarding him RM50,000 in damages. Zuraida and the other defendants subsequently appealed the decision, while Lim filed a cross-appeal seeking a higher amount.

During the appeal, Lim's counsel, Datuk Sankara Narayanan Nair, argued that the RM50,000 awarded was insufficient and cited case law trends suggesting an award of RM250,000. Meanwhile, Nizamuddin Abdul Hamid, representing Zuraida and the other appellants, argued that the comments were not defamatory and urged the Court of Appeal to overturn the High Court's decision.

Following the decision, Sankara mentioned that he would consult with his client on whether to escalate the matter to the Federal Court.