JUDGMENT

Arifin Zakaria FCJ:

Background

[1] This is an appeal against the majority decision of the Court of Appeal dated 17 June, 2005 (Abdul Aziz Mohamad JCA (as he then was) dissenting) in dismissing the appeal by the appellant.

The Facts

[2] The undisputed facts of the case are as follows:

[3] A petition for winding-up was filed by Savant Asia Sdn. Bhd. ("the appellant") through its solicitors, Zaid Ibrahim & Co., on 22 March 1999 in respect of a debt of RM141,750 owed by Sunway PMI-Pile Construction Sdn. Bhd. ("the respondent"). The hearing date was fixed on 3 September 1999. The petition was served on the respondent on 23 April 1999. On 4 May 1999, the respondent tendered a cheque to the appellant for the exact amount of RM141,750. The cheque was cleared on 11 May 1999. The petition however was published in the Star newspaper on 12 May 1999 despite the fact that the debt had been settled on 11 May 1999.

[4] The respondent brought an action at the High Court against the appellant for libel on account of the advertising of the petition in the Star newspaper on 12 May 1999 by the appellant after the debt had been fully settled. Joined as the 2nd defendant in the High Court were t