15-05-2025
High Court strikes out ex-MMM deputy chairman's suit challenging insider trading law
KUALA LUMPUR: The High Court (Special Powers Division) has dismissed a civil suit filed by the former executive deputy chairman of Malaysian Merchant Marine Bhd (MMM), Datuk Ramesh Rajaratnam, against the Securities Commission (SC) and the Government.
In a statement, the SC said Justice Datuk Amarjeet Singh Serjit Singh had ruled that the originating summons filed by Ramesh constituted an abuse of the court process, and awarded costs of RM5,000 each to the SC and the Government.
On Sept 10, 2024, Ramesh commenced a civil suit at the High Court (Special Powers Division) and sought a declaration that section 188(2)(a) of the Capital Markets and Services Act 2007 (CMSA) was contrary to Articles 5(1), 8(1) and (2), 10(1)(a) and 13 of the Federal Constitution and therefore null, void, and of no effect immediately.
In response, the SC filed an application on Oct 8, 2024 to strike out the civil suit on the grounds that it was barred by res judicata, constituted an abuse of process, and represented a collateral attack on Ramesh's criminal conviction by the Sessions Court and his ongoing criminal appeal before the High Court.
Ramesh was previously charged at the Kuala Lumpur Sessions Court on Oct 29, 2015 with three charges of insider trading under section 188(2)(a) of the CMSA.
He was convicted following a full trial and was sentenced to five years imprisonment and a fine of RM3mil (in default three years imprisonment) for each charge.
In relation to the appeal to the High Court, Ramesh's conviction and sentence on all three charges were set aside on the grounds of judicial copying by the trial judge.
The Court of Appeal subsequently reinstated his conviction and sentence for the first charge upon the Public Prosecutor's appeal and remitted the case to the High Court for the case to be heard on its merits. The appeal on merits is pending hearing before the High Court.
