Kuala Lumpur: The Federal Court today ordered Public Bank Berhad to pay RM90 million in damages to National Feedlot Corporation (NFCorp), its chairman Datuk Mohamad Salleh Ismail, and three subsidiary companies for breach of contract to protect their bank account confidentiality.
According to BERNAMA News Agency, a three-member bench led by Chief Judge of Malaya Tan Sri Hasnah Mohammed Hashim, Chief Judge of Sabah and Sarawak Tan Sri Abdul Rahman Sebli, and Federal Court judge Datuk Abu Bakar Jais awarded RM30 million each in equitable, exemplary, and aggravated damages. Justice Hasnah stated that Public Bank is required to pay two percent interest per annum on the judgment sum from today until the payment of damages is settled.
In delivering the court’s decision, Justice Hasnah noted that the appellants had presented financial reports and audited accounts through an expert witness, which were not contested by Public Bank. The Court of Appeal had previously erred when it decided that the appellants had failed to prove damages, resulting in an award of only RM10,000 in nominal damages.
On May 26, the panel reversed the Court of Appeal’s earlier decision, which had granted nominal damages to NFCorp, Mohamad Salleh, and three subsidiaries-National Meat and Livestock Corporation Sdn Bhd, Agroscience Industries Sdn Bhd, and Real Food Company Sdn Bhd. Mohamad Salleh is the husband of former Minister of Women, Family and Community Development and Wanita UMNO chief Tan Sri Shahrizat Abdul Jalil.
On the same day, the Federal Court upheld the Court of Appeal’s decision, which found Public Bank liable for breach of confidentiality. The court ordered Public Bank to pay RM300,000 in legal costs and adjourned until today to decide on the amount of damages.
NFCorp and four others filed the RM560 million suit against the bank in 2012 over the leakage of their banking details. The High Court dismissed the lawsuit in 2019, but the appellate court in 2023 reversed the decision after allowing their appeals. However, the Court of Appeal maintained that while NFCorp and the four others succeeded in proving liability, they failed to prove damages, leading to a nominal damages award of RM10,000.
In the suit, NFCorp and the four others claimed that the bank breached confidentiality by allowing details of banking transactions to be revealed by the then PKR vice-president Rafizi Ramli. They also claimed their business reputation and credibility suffered irreparable loss and damage due to the breach under the Banking and Financial Institutions Act.
After the court proceedings, Mohamad Salleh expressed gratitude, stating that his family endured hardship for 13 years due to the case. In today’s proceedings, Lawyer Tan Sri Muhammad Shafee Abdullah represented NFCorp and the four others, while Public Bank was represented by lawyer Chan Kok Keong.