Anwar told Justice Zaki Abdul Wahab that he had decided to withdraw the 2008 lawsuit against Nallakaruppan.

“The testimony that he (Nallakaruppan) gave in court this morning explained that his speech during the 2008 Permatang Pauh by-election was wrongly reported and twisted.

“He also denied saying, based on Musa Hassan’s (former Inspector-General of Police) affidavits, that Anwar was a ‘traitor’ to the country.

“I am satisfied with that and withdraw this civil action,” he said.

Justice Zaki then dismissed the lawsuit.

No order was made to costs.

Speaking to reporters after the withdrawal, lawyer Shafee Abdullah, for Nallakaruppan, said they were happy Anwar had withdrawn the lawsuit.

“He (Anwar) decided that enough is enough,” he said, referring to the lawsuit.

When asked if Nallakaruppan will still be “friends” again with Anwar, he said: “Friend always friend.”

He added “both sides happy means happy lah” when asked how he felt on the withdrawal of the lawsuit.