Snehal Upadhyay-
Published on August 30, 2021, at 13:42 IST
The High Court in Malaysia has directed Jakel Group’s Datuk Mohamad Nizam Mohamad Jakel to compensate RM1.5 million to three shareholders for allegedly forcing them to enter into numerous agreements with him which resulted in economic duress.
The Judicial Commissioner Ong Chee Kwan gave a 115-page judgement and said that “Nizam had threatened to take away the shareholders’ contracts in the development of systems to vet entries of foreigners into Malaysia which ran into millions of ringgit unless they transferred shares to the company of his wife, Norhana Sharkhan.”
It was also found in his Judgement that he called Mohamad Nizam’s conduct intolerable and his conduct amounts him to pay exemplary damages of RM500,000 to each of the three shareholders.
The Judge stated that Mohamad Nizam had not even contributed a bit to the systems but he intended to get all the benefits out of the efforts which were made by the plaintiffs.
“Such actions also would have a crippling effect on the ability of meritorious companies dealing with the government of Malaysia,” he further stated.
While pronouncing the Judgement, Judge Ong directed that the shares must be transferred back to the companies immediately and declared the agreements to be void.
Mohamad Nizam is also been directed to pay RM360,000 to the plaintiffs’ Counsel Tan Sri Tommy Thomas, K Shanmuga, V. Jeya Kumar and Jonas Lee Fook Khong.
The plaintiffs had filed their suit in the year 2018 and mentioned that the agreements signed with the defendant were due to economic duress, unwillingness, illegality, failure of consideration, breach of condition and unjust enrichment.
The plaintiffs sought that the defendant had by proscribed means applied undue influence and coerced them to transfer their respective shares in the companies.
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