This is because the Court of Appeal is bound by a Federal Court decision early this year.
It also means that Lim’s suit, which was struck out by the High Court in Penang three years ago, has been reinstated.
In a virtual proceeding, a three-member bench chaired by Kamaludin Md Said, also ordered Teng to pay Lim RM75,000 in costs.
Kamaludin, who sat with Supang Lian and Mariana Yahya, was informed by lawyers for both parties that they had agreed not to proceed with the appeal following the Federal Court ruling.
On Feb 26, the apex court, in a 2-1 majority ruling, allowed Lim’s appeal in a defamation action against Malay rights group Perkasa for labelling him a traitor in allegedly revealing national secrets to the Singapore government.
Judge Harmindar Singh Dhaliwal, who spoke for the majority, held that Lim could bring the suit in his personal capacity.
He said reputation is a factor, irrespective of whether a plaintiff had brought an action for defamation in his private or public capacity.
Lim, represented by Mureli Navaratnam, today told the bench that the parties had agreed to settle the matter by way of a consent order.
Kamaludin then fixed case management on Nov 22 at the Penang High Court.
Lawyer Harpal Singh told FMT that Teng would extend a written apology to Lim to bring the matter to an end.
Lim’s suit against Teng was struck out in 2018 on grounds that he did not have locus standi to file the suit as chief minister.
Lim had sued Teng over comments made in November 2016 regarding a Penang Development Corporation deal surrounding a piece of land in Pulau Jerejak.
He also named Star Media Group Berhad, its news editor, northern region business journalist David Tan and journalist Crystal Chiam Shiying as defendants over their reports on the controversy.
The MCA-owned publishing company settled the matter with Lim without going to court.