In opposing Najib’s application for the judgment to be stayed pending appeal, lawyer P Gananathan, representing the company, submitted that the alleged hardship raised by Najib was nothing more than the ordinary consequences of a monetary judgment.

“Any perceived difficulty of having assets liquidated or cash flow disrupted or overall impact on financial stability do not amount to special circumstances.

“The ‘fear of losing’ or being exposed to financial ruin does not counter execution as a natural process which follows the judgment. These personal circumstances are not exceptional,” he said.

Gananathan further argued that Najib’s position as a public figure did not entitle him to any special treatment, nor did it convert the ordinary consequences of a judgment debt into exceptional circumstances warranting a stay.

‘Colossal, unprecedented sum’

Najib’s counsel Farhan Shafee, however, submitted that the case was exceptional due to the “colossal” judgment sum.

“The sum in the present instance transcends the realm of ‘large’ and enters the territory of an extraordinary event,” he said.

He said that, given the astronomical sum involved, enforcing the judgment at this stage would lead to serious and possibly irreversible financial consequences for Najib, and would undermine the practical value of the pending appeal.

He added that while earlier cases involved sums that were commercially manageable within the usual legal framework, the present judgment of US$1.3 billion is “unprecedented”.

SRC under liquidation

Farhan also explained that SRC International has been formally wound up, with liquidators appointed, creating practical difficulties in recovery should Najib succeed on appeal.

He said that without a stay, any eventual success in the appeal could be rendered academic, as the judgment sum might already have been dissipated through the liquidation process.

“Given that the plaintiff has been wound up and is currently in liquidation, there is a legitimate and real risk that the substantial sum of US$1.3 billion would be impossible to recover should (Najib’s) appeals succeed, thereby rendering those appeals nugatory,” he said.

However, Gananathan countered that the winding-up order dated Jan 19 directed that all monies received by the liquidator be channelled into the SRC Group Trust Account operated by the Minister of Finance Incorporated (MoF Inc).

“As such, any sums recovered through the execution of the judgment will ultimately be held and administered by MoF Inc, and would effectively be held by the government for the benefit of the company,” he said.

Farhan also pointed out that Najib remains subject to substantial criminal penalties arising from separate SRC and 1MDB proceedings, and that the immediate execution of the civil judgment could impair his ability to satisfy those obligations.

Justice Ahmad Fairuz Zainol Abidin fixed May 13 to rule on the application.

SRC International was also represented by Kwan Will Sen, Lee Suan Cui, Luc Choong and Koo Jia Ying, while Najib was also represented by Shafee Abdullah.

On March 31, the High Court awarded SRC International judgment for US$1.3 billion after ruling that Najib had breached his fiduciary duties, abused his position and acted in bad faith, resulting in losses to the company.