Federal Court reserves decision on Zuraida’s RM10mil bond

PKR wants the sum restored after the Court of Appeal slashed it to RM100,000.

A three-member bench chaired by Chief Justice Wan Ahmad Farid Wan Salleh, sitting with Sabah and Sarawak chief judge Azizah Nawawi and Justice Azmi Ariffin, did not set a date for its ruling.

PKR’s lawyer, Ranjit Singh, argued today that the RM10 million sum ordered by the High Court was reasonable, saying Zuraida had admitted the value “conferred” on her by the party exceeded RM10 million, Bernama reported.

He said the bond’s operative clause fixed RM10 million as the sum payable if she breached it.

Ranjit said the appeal turned on the legal effect of that admission under Section 75 of the Contracts Act, which guards against penal or unconscionable contract clauses.

He also said the bond had to be read against the political climate at the time, when party-hopping was seen as a threat to the stability of the government.

“Look at what happened. The Sheraton Move led to the collapse of the Pakatan Harapan coalition at the federal level,” he submitted, pointing to that outcome as justification for the sum.

However, Zuraida’s lawyer, Azhar Harun, argued that there was no separate category of “political contract” exempt from Section 75, and that a political party cannot use its position to bypass statutory protections against penalty clauses.

Azhar also argued that there was unequal bargaining power between the party and its candidates, saying the RM10 million bond was imposed as a condition of candidacy rather than freely negotiated.

He said the RM100,000 payment ordered by the Court of Appeal was reasonable.

PKR is appealing the appellate court’s decision on Dec 11, 2024, to reduce the amount from RM10 million to RM100,000, although the court upheld the High Court’s finding that Zuraida had breached the bond.

The High Court had on June 23, 2023, allowed PKR’s suit and ordered Zuraida to pay RM10 million, ruling that she had breached the terms of the bond signed with the party before the 2018 general election.