Barakbah (Malaya) CJ:

The plaintiff in this case was the Minister for Health in the Government of the Federation of Malaya. The first defendant is an advocate and solicitor and a Member of the House of Representatives. The second defendant is a company director. The plaintiff's claim was for damages for libel and slander alleged to have been published by the defendants at the Chinese Assembly Hall in Kuala Lumpur on 11 September 1963.

Hepworth J dismissed the claim and the plaintiff now appeals to this Court against his decision. The first defendant has also filed a cross-appeal but, according to him, his purpose was merely to support the Judge's grounds of judgement.

I shall endeavour to set out the facts of the case as concisely as possible. In 1958, the second defendant had applied to the Pahang Government for a licence to extract bat guano at a place called Kota Gelanggi, Pulau Tawar, in the District of Jerantut in the State of Pahang. The guano was to be sold as fertiliser. In 1959 armed with a letter of introduction, he went to see the Mentri Besar of Pahang in connection with his application. In April 1960 a licence was granted to him, expiring on 31 December 1960.

From time to time, this licence was renewed; first, to 30 June 1961, then to 31 December 1961, and finally to 30 June 1962, all in the name of the second defendant. He stated that sales in any large quantity were not possible as the renewals of the licence were only for short periods each time, rendering it impossible to guarantee a steady continuous supply to prospective purchasers.

About the end of 1961 the second defendant came to understand that the Pahang Government was proposing to change its policy in regard to such licences by issuing them only to limited companies rather than to individuals. Consequently he approached one Che Sabri bin Haji Dhalan with a view to his putting up the capital to form a company. Che Sabri agreed and contributed $4,300 on the understanding that he was to receive shares in the company for such amount in due course. On 11 December 1961 the Sharikat Bhd. Baja Asli Melayu or Malay Natural Fertiliser Co. Ltd., (hereinafter referred to as the "old company") was registered, the directors being the second defendant and Che Sabri. Without any delay the old company then applied for a 15 year lease of the area at Kota Gelanggi and a licence to extract guano for that period.

One evening in the latter part of 1961 or early 1962, the second defendant, Che Sabri and Che Musa bin Abdul Rahman, (father of the plaintiff's wife) went to call on the Mentri Besar of Pahang regarding the application for the 15 year lease and licence. They were told by the Mentri Besar that the matter would be considered by the State Council.

In March 1962 the second defendant's family, consisting of his wife, a son and a daughter, came to live in the plaintiff's house at Kia Peng Road, Kuala Lumpur. It would appear that the second defendant himself stayed there only off and on until June 1962, when the engagement took place between the plaintiff's youngest brother and the second defendant's daughter, after which date the second defendant appears to have also taken up more regular residence at the plaintiff's house. The reason for these moves would appear to be that the second defendant was then in financial difficulties.

While awaiting a reply from the Pahang Government to the application for the 15 years lease and licence, the second defendant contacted a Japanese gentleman by the name of Suzuki, who was sufficiently interested to take samples of guano back to Tokyo for analysis. The analyst's report was satisfactory, the guano having been found to contain phosphate, in some cases up to nearly 40%. The second defendant then in May 1962, went to see a Mr. R Hughes in Kuala Lumpur, who introduced him to a Mr. HG Warren and a Mr. DWA Corkett. These gentlemen became interested in the guano business. As a result of discussions between the second def