The Court of Appeal today upheld the Kota Bharu High Court decision last year in awarding 354 Federal Land Development Authority (Felda) settlers RM11 million in damages.

The Appellate Court delivered a 2-to-1 verdict in favour of the settlers with Federal Court's Justice James Foong and Court of Appeal judge Justice Abdull Hamid Embong ruling in their favour. Justice Abdul Malik Ishak was the dissenting judge.

However, the court granted Felda - represented by Sunil Abraham - a stay of execution pending their leave to appeal to the Federal Court.

The judgment was received with joy and prayers by some of the settlers who were in court this morning.

felda kemahang settlers and lawyer duta court 260609 Most of them had travelled all the way from Kelantan and had stayed overnight with their relatives to hear the judgment.

Their lawyer Wan Rohimi Wan Daud said the judgment was long coming as the settlers had suffered tremendously in dealing with the losses and threats.

"This is not an isolated case, as we (lawyers) had found many other cases where Felda had cheated the settlers, like the one in Labis, Johor," he said, adding that suit has been filed against Felda by the Labis settlers.

"The programme is good as it is to assist the settlers. However, do not cheat them of their livelihood.

"How are they to survive of their right to a greater income? This is something which Felda and the minister in charge should address and stop using their rightful funds elsewhere," he said.

Another lawyer Yusfarizal Yusoff said this was a significant judgment as "it is quite rare for the court to grant a tort of conspiracy as had been alleged against Felda for cheating the settlers".

Spotlight on Mustapha not addressed

The spotlight in the cases landed on former Agriculture and Agro-Based Industries Minister Mustapha Mohamed when it was claimed that he had threatened the settlers to withdraw their lawsuit against Felda.

However, the Court of Appeal judgment today made no mention on the alleged role played by the former minister.

But Felda came under fire for the manner it had treated the settlers.

kemahang tiga 080109 "As a statutory body (Felda), it is to assist the settlers in raising their standard of living. Instead, we have here a situation of the first defendant (Felda) cheating the plaintiffs (settlers)," said justice Foong.

"In a position of authority over the plaintiffs in the allotment of land in the said scheme, Felda had after the suit was filed, threatened to evict the plaintiffs from the scheme for pursuing the action.

"Such intimidation weighs against Felda. The third defendant (Felda Palm Industries Sdn Bhd) is no better since they are associated with or is part of Felda.

"Given the circumstances and having taken into account all other relevant factors into consideration, we are of the view that the trial judge's award of this amount is justified," he said.

The settlers named Felda, its area manager Ibrahim Ismail and Felda Palm Industries Sdn Bhd as defendants.

The Felda Kemahang 3 settlers in Tanah Merah led by Awang Soh Mamat filed the suit on Sept 22, 2002, claiming that they were cheated of payment for palm fruit from 1996 to 2002.

They are seeking between RM20,000 and RM30,000 in general damages.

Kota Bharu High Court judge Justice Mohd Azman Husin had on Jan 13 last year ordered Felda to pay RM7.8 million plus interest after the counsel representing Felda and Felda Palm Industries failed to turn up for the hearing of the suit.

The counsel had applied for a stay of execution last March but Mohd Azman rejected it and ordered Felda solicitors to deposit the amount with accumulated interests, now totalling more than RM11 million.