Justice Anand Ponnudurai ordered NFC to refund RM33.7 million to the government, being the unutilised portion of a RM250 million loan extended by the government to the company previously.
Anand also ruled that Putrajaya was entitled to recover an additional RM86.9 million seized from the defendants and currently held by the Accountant-General in escrow.
In addition, he ordered land in Gemas, Putrajaya and One Menerung to be transferred to the government as beneficial owner.
However, Anand dismissed the remainder of the government’s claim against NFC and 10 other defendants, including its chairman Salleh Ismail, who is Shahrizat’s husband, and three of their children.
“The plaintiff’s claim for a refund of the entire RM250 million would be tantamount to unjust enrichment,” he said in his judgment.
The judge also said it was not unlawful for NFC to utilize a portion of the loan sum to invest in properties in the name of the company, holding that it did not amount to a breach of contract or a misappropriation of monies.
The High Court instead ruled against the government in NFC’s counterclaim, holding that project targets were not met as the government had breached its obligation under an implementation agreement by failing to construct an “export quality abattoir”.
Anand also found that it was the government which had breached the loan agreement by unlawfully terminating it. However, the judge only awarded nominal damages of RM10,000 to the defendants.
Applying his inherent powers, the judge went on to terminate the failed NFC project. The project had been started with the aim of helping Malaysia become self-sufficient in beef production.
“With the said project having admittedly failed, it is my view that this is the appropriate relief to be ordered to achieve the ends of justice,” he added.
The loan was advanced by the government to NFC in 2007 in a bid to turn the local cattle industry into a large-scale business. NFC was obliged to make annual repayments of RM17 million from 2012 to 2028.
The present suit was filed by the government in 2019.
It also named six companies owned by the family named as defendants.
Lawyers K Kirubakaran, Rajan Navaratnam and Chong Kah Yee appeared for the defendants, while senior federal counsel Nurhafizza Azizan and Ashraf Abdul Hamid represented the government.