KUALA LUMPUR: DAP chairman Lim Guan Eng has filed a bankruptcy notice against former prime minister Tan Sri Muhyiddin Yassin, seeking RM1.35 million in defamation damages.
Lawyer Guok Ngek Seong, when contacted, said the former finance minister filed the notice at the High Court here today.
The Bagan member of parliament, in the notice, gave Muhyiddin seven days from the date of service to settle the amount.
However, Muhyiddin, who is Parti Pribumi Bersatu president, has filed a stay of execution of the judgment pending his appeal at the Court of Appeal.
The Pagoh member of parliament, in his application, said he required time to raise the said amount due to the substantial amount involved.
"Given the substantial amount in the judgment sum, in the event the appeal is allowed, it is likely that the defendant will not be able to recover the judgment sum paid to the plaintiff.
"The defendant is a Pagoh MP. If he is adjudged bankrupt, it will result in severe and irreversible consequences in that he will be disqualified from holding office as an MP.
"The defendant is prepared to deposit 50 per cent of the judgment sum into a fixed deposit account to be held as stakeholder by the plaintiff's solicitors, pending the hearing and disposal of the defendant's appeal," the application stated.
On Nov 8, the High Court ordered Muhyiddin to pay RM1.35 million in damages for defaming Lim over the revocation of Albukhary Foundation's tax exemption.
High Court judge Roz Mawar Rozain, in her ruling, said Lim had successfully proven his case against Muhyiddin.
Lim had claimed that the defamatory statements implied that he had abused his position and power as finance minister by authorising or directing the Inland Revenue Board to impose taxes and penalties on the charitable foundation, when it should not have been taxed.
The judge said Muhyiddin's conduct was unwarranted as he had resources at his disposal to verify and confirm whether his understanding of the facts was correct.