James Foong JCA (delivering majority judgment):

This is an appeal by the defendants against a decision of the High Court which allowed the plaintiff’s claim for defamation and awarded a sum of RM200,000 as general damages, RM50,000 as exemplary and aggravated damages, and RM980,000 as special damages, all with interest thereon and costs to the plaintiff.

BACKGROUND

The dispute between the parties started in this manner. The plaintiff was, at the material time, the sole representative in the State of Johore of two institutions of higher learning: (a) St Clements University of Turks & Caicos, British West Indies (St Clements University) and Irish Business School of Dublin, Ireland (Irish Business School). The plaintiff was actively promoting degree courses offered by these two institutions to students of the second defendant. The second defendant had a large reservoir of potential candidates because its students were mostly engaged in courses awarded with a diploma or a certificate. The appeal of a degree qualification from these two institutions represented by the plaintiff was the chance to qualify for acceptance into the Malaysian Association of the Institute of Chartered Secretaries & Administrators (‘MAICSA’) and the Association of International Accountants (‘AIA’). Even the Jabatan Perkhimatan Awam (‘JPA’) recognises it provided the holder of such degree must possess a first degree from a university recognised by them.

Sometime in 1999, the National Accreditation Board (‘LAN’) issued a circular dated 20 August 1999. A copy of this circular was sent to the second defendant. This circular says that the validity, existence and quality of three foreign institutions of higher learning are in doubt and LAN will not process academic certificates issued by them. The three were:

(a)St George University International (established in the Turks & Caicos Islands);

(b)European University Ireland; and

(c)The Irish School of Economics & Management.

Though the two institutions which the plaintiff represented were not included in this LAN circular, the second defendant juxtaposed at the bottom of this circular as follows:

NOTE:

Confirmed with British Council (UK):

1.St Clement University is under Irish Business School

2.No information about St George University

3.The 3 Universities listed above are NOT in UK.

This circular with its added note was displayed by the second defendant on its notice board. This document was marked as exh P20. For full effect of this, I reproduce P20 in its entirety (see attachment).

Then on 21 April 2000, the first defendant, a principal of the second defendant, issued a circular to all the students and staff of the second defendant. This document was marked as exh P23 and I reproduced it here in its entirety (see attachment).

According to the plaintiff, by the natural and ordinary meaning of the words juxtaposed into P20 and those expressed in P23 meant and were understood to mean:

The National Accreditation Board doubts the existence, validity and quality of St Clements University and the Irish Business School.

That the British Council has confirmed that St Clements University is part of Irish Business School and that the validity, existence and quality of the said two institutions are in doubt.

That the plaintiff for his personal gain had misled the students concerned by promoting degree courses in St Clements University and Irish Business School whose validity existence and quality is doubted by the National Accreditation Board and therefore the plaintiff is a dishonest and unscrupulous man.

The plaintiff is a cheat and unfit to be engaged in the business of education.

That the plaintiff by promoting degree courses in St Clements University and Irish Business School had committed an offence under the said Akta Institusi Pendidikan Tinggi Swasta 1996 which is punishable by a fine of RM100,000 and imprisonment of 1 year.

As a result of the impugned words, the plaintiff claimed that he has suffered serious injury to his reputation an