PUTRAJAYA: Former Penang chief minister Lim Guan Eng and former Penang Barisan Nasional chief Teng Chang Yeow have agreed to settle a defamation suit over an article on Pulau Jerejak.

Lim's counsel Datuk N. Mureli informed the Court of Appeal today that both parties have reached a settlement and a consent judgment draft has been filed in respect of his client's suit against Teng at the Penang High Court.

Datuk Harpal Singh Grewal, who represented Teng, confirmed his client has agreed to the consent judgment draft.

A Court of Appeal three-member panel led by Justice Datuk Seri Kamaludin Md Said was today scheduled to hear Lim's appeal against the High Court's ruling which allowed Teng's application to strike out the suit brought by Lim.

Justice Kamaludin who sat with Justices Datuk Supang Lian and Datuk Seri Mariana Yahya in the virtual proceedings allowed Lim's appeal and ordered for the case to be sent back to the Penang High Court to record the consent judgment.

"There is a basis in the appeal because of the recent Federal Court case. There are issues to be tried, so we send back the case to the High Court and consequent to this, at the High Court, parties will record the consent judgment," said Justice Kamaludin and fixed Nov 22 for the case to be mentioned at the High Court.

Regarding the legal costs, Mureli informed the panel that both parties have also agreed for the global costs of RM75,000 to be paid by the respondent (Teng) to the appellant (Lim).

On June 29, 2018, the Penang High Court allowed Teng's application to strike out Lim's legal action.

In April 2017, Lim filed the suit naming Teng, who is also former Penang Gerakan chairman, Star Media Group Berhad news editor David Tan and journalist Crystal Chiam Shiying as defendants.

In his statement of claims, Lim claimed that Teng had given the permission and/or caused the defamatory and false statements to be written and published in the newspaper and its website through the other defendants.

He claimed that the defendants had maliciously published a defamatory and false statement in an article titled "Pulau Jerejak land sale questioned" dated Nov 16, 2016, which referred to the plaintiff (Lim).

However, Lim's legal action against the other defendants has been settled.

-- BERNAMA