This follows a finding by judge Elesabet Paya Wan that a car driven by a security guard was not involved in an accident that allegedly took place in 2017.

Car insurer, Liberty Insurance Bhd, had alleged in its statement of defence that the parties had lodged false reports about the involvement of the car.

Elesabet also ordered the plaintiffs – motorcyclist K Mageshwaran and pillion rider V Darvin Kumar – to pay scale costs to Liberty Insurance based on a schedule in the Rules of Court 2022.

The two had filed the suit against Abdul Karim Mohamad and car owner S Annapoorni who had taken out a motor insurance policy with Liberty Insurance.

Karim was said to be in possession of the vehicle although legal ownership had not been transferred to him.

Karim had, in 2018, lodged a police report claiming to have knocked into Mageshwaran and Darvin in an accident at Bukit Beruang about 9.15pm on May 10, 2017.

The insurance company ordered its adjusters to investigate the claim as they suspected something amiss.

During investigations, Karim admitted to the adjusters that a person identified as Robert, who is an agent for a lawyer, paid RM3,000 to him (Karim) to make the false report.

Karim then made a second report to deny his initial report. He was later charged in court, pleaded guilty and was fined RM1,800.

Despite this, Mageshwaran and Darvin maintained their negligence suit filed in 2020.

Lawyer JS Naicker and Rosmaria Daud represented Liberty Insurance while counsel Surendran Chelvarajah appeared for Mageshwaran and Darvin.