PUTRAJAYA: The RM10mil payment imposed on former PKR vice-president Datuk Zuraida Kamaruddin for breaching a bond with her former party was extravagant, says the Court of Appeal.
Instead of the RM10mil, a three-judge panel of the appellate court reduced the quantum to RM100,000 as this amount was “a reasonable compensation”.
Justice See Mee Chun, who chaired the panel, said that while the party was entitled to compensation due to Zuraida’s breach, the RM10mil amount was excessive and disproportionate as the undisputed 22 months of Zuraida’s service as a PKR MP had not been considered.
“The High Court judge had upheld the RM10mil as a deterrent for any disloyalty, and any lesser amount might not be effective.
“However, what was not considered was whether this was a reasonable compensation.
“To conclude on this issue, after considering the evidence and the principles of legitimate interest and proportionality, we find the RM10mil cannot be construed as reasonable compensation.
“We find it unreasonable, extravagant, excessive and not proportionate to the legitimate interest sought to be protected,” she said in yesterday’s decision.
The panel said it found the High Court judge was wrong in allowing the respondent’s claim of RM10mil, but it could not ignore the breach of bond by the appellant.
“We vary the amount payable to RM100,000. The appeal is partly allowed, and the decision by the High Court is varied to that extent,” Justice See said.
The court also ordered PKR to pay Zuraida RM40,000 in costs.
Other judges on the panel were Justices Azman Abdullah and Ahmad Kamal Md Shahid.
On June 23 last year, the Kuala Lumpur High Court ordered Zuraida to pay RM10mil to PKR for breaching the bond following her involvement in the Sheraton Move in 2020.
She was also ordered to pay PKR RM50,000 in costs.
Justice Akhtar Tahir had ruled that the bond, signed by Zuraida on April 25, 2018, was a valid and binding contract.
He stated the RM10mil was reasonable to deter party members from acting against the party’s interests.
The claim stated Zuraida executed a bond to pay the party RM10mil under conditions such as resigning from the party, joining another political party, or becoming an independent representative after winning an election on a PKR ticket.
During the trial, Zuraida claimed she was forced to sign the bond to contest the 14th General Election on the party ticket 2018, receiving documents a day before nomination day without explaining its terms and conditions.
In Putrajaya, Sinar Harian reported that Zuraida said the decision by the Court of Appeal was a blow to the party.
She said the decision shows that PKR has established a very unfair relationship with its party members.
“The RM10mil claim was indeed unreasonable, so when the court ordered me to pay RM100,000, I’ll pay it one ringgit by one ringgit,” she joked during a press conference after the proceedings concluded.
