The Kuala Lumpur High Court has scheduled a decision for Aug 12 on an application by Datin Seri Rosmah Mansor to stay a court-mandated payment of RM67,461,027.37 to Lebanese jeweller Global Royalty Trading SAL, according to court proceedings on Wednesday (Aug 5). Judicial Commissioner Marianne Antoinette Ghani reserved judgment after hearing arguments from both legal teams.
The Legal Battle Over the RM67.5 Million Payment
The underlying financial judgment stems from a June 10 High Court ruling, where Justice Quay Chew Soon ordered Rosmah to pay RM67,461,027.37 to Global Royalty within one month. According to court findings, Rosmah was held liable for 43 missing pieces of jewellery that were delivered under a consignment arrangement for viewing and remained under her custody. Rosmah subsequently filed an appeal on June 12, and the current stay application seeks to halt the monetary payout pending the outcome of that appeal.
Arguments for the Stay of Execution
During the Aug 5 hearing, defence lawyer Reza Rahim argued that granting a stay was inevitable because Global Royalty is a foreign entity with no local presence or assets in Malaysia. Furthermore, the company is not listed in the First Schedule of the Reciprocal Enforcement of Judgments Act 1958 (REJA), a statute allowing fast-track registration and enforcement of foreign monetary judgments from reciprocating nations. Reza stated that Rosmah only retains a single bank account containing approximately RM100,000, while her remaining assets stay frozen under injunctions tied to 1Malaysia Development Bhd (1MDB) lawsuits. According to the defence, it remains doubtful whether Rosmah could recover funds from the plaintiff if her appeal ultimately succeeds.
Plaintiff Objections and Plaint Background
Representing Global Trading, lawyer Venothani Rajagopal strongly objected to the stay application. Venothani submitted that the defence provided no evidence proving the company is insolvent or lacks assets to make restitution. She argued that being a foreign incorporation alone forms an insufficient basis to grant a stay of execution. Global Royalty originally filed the civil suit on May 29, 2023, asserting that 44 items—including diamond necklaces, bracelets, and tiaras—sent via agent were falsely claimed by Rosmah to have been seized by Malaysian authorities under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. Police records ultimately retained only one of the 44 pieces, leading the jeweller to argue that Rosmah shifted blame to the government for the missing inventory.
Pro Tip: Understanding REJA in Malaysian Civil Litigation
The Reciprocal Enforcement of Judgments Act 1958 governs how foreign judgments from specific reciprocating commonwealth and international jurisdictions are registered and enforced locally in Malaysian courts without initiating a fresh lawsuit. Lebanon is not currently listed under the First Schedule of REJA, a point frequently central to cross-border asset recovery and stay applications.
Frequently Asked Questions
When will the High Court deliver its ruling on the stay application?
Judicial Commissioner Marianne Antoinette Ghani fixed Aug 12 for the decision after reserving judgment on Aug 5.
How much does the court order require Rosmah to pay?
The High Court ordered a payment of RM67,461,027.37 to Global Royalty Trading SAL, alongside RM75,000 in costs each to the plaintiff and third parties.
What is the legal basis for Rosmah’s stay application?
According to her lawyer Reza Rahim, the application relies on the plaintiff being a foreign entity not listed under REJA, alongside frozen assets stemming from 1MDB lawsuits.
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