Lawyers for Prime Minister Dr Mahathir Mohamad today failed to serve a bankruptcy notice on jailed ex-deputy prime minister Anwar Ibrahim when the latter refused to meet them.

Anwar had maintained that he will not accept the service of the notice as a matter of principle, said his lawyer Sankara Nair today.

The attempt to serve the notice on Anwar was made this morning at the Sungai Buloh prison where he is currently serving a 15-year jail sentence.

The notice is related to Mahathir's failure to recover RM35,381 awarded to him by the Court of Appeal as his defence cost. The Appellate Court had dismissed Anwar's appeal against the High Court's decision to strike out his RM100 million defamation suit without hearing its merits.

'A matter of principle'

"I cannot accept service of this notice as a matter of principle. This charade to vilify me was planned and orchestrated by Dr Mahathir and is devoid of merit. There is no limit to his vindictiveness, despite his age," said Anwar in a statement which was released by Sankara today.

Anwar issued the statement in anticipation of the service of the notice by Mahathir's solicitor, Messrs Adnan, Subra and Low, which was believed to have filed for a bankruptcy petition last month in Shah Alam High Court.

"The legal firm had written a letter to the prison officials requesting to serve the bankruptcy notice to Datuk Seri Anwar today. The officials wrote to me requesting that I be present today. But I replied that I had a prior engagement and would only be there at my client's instruction," he said.

He also said Anwar has the right to turn away any visitor as he deemed fit.

On Sept 23, malaysiakini reported that Mahathir's lawyers through a letter dated Sept 5, warned Anwar that they would initiate bankruptcy proceedings against him if he further delayed payment of the prime minister's legal costs of RM35,381.

When informed of the threat, Anwar told his lawyer that it would be against his principle to pay Mahathir the costs and he was prepared to bear the consequences which include being declared a bankrupt.

The sum is in addition to the RM103,773 which Anwar was also ordered to pay Mahathir last year after his failed attempts at the High Court and the Federal Court to strike out his appeal against the Court of Appeal decision.

Lawyer Karpal Singh who represented Anwar in the civil suit said no demand had been made for the defence costs for the proceedings at the High Court and the Federal Court.

Bankruptcy proceeding

The Malaysian Bankruptcy Act allows a person to file a bankruptcy notice at the High Court against any individual for failure to settle debts exceeding RM10,000. The petitioner will have to serve the notice to the defendant personally within three months.

After failing to serve the notice three times, the petitioner can apply to the court for a substitute service and subsequently advertise the bankruptcy notice in the newspapers, and post it at the alleged bankrupt's residence and at the court's notice board.

A person who has been declared a bankrupt will have all his financial affairs managed by an official assignee until the amount demanded is duly settled.

Anwar was sacked by Mahathir as deputy premier on Sept 2, 1998 on the grounds of immorality and detained 18 days later under the Internal Security Act (ISA) after leading mass anti-government protests in the city.

Two days after Anwar's arrest, Mahathir called a press conference to give his reasons for the sacking.

In January 1999, Anwar filed a suit claiming that Mahathir defamed him during the press conference knowing that he was in detention and unable to defend himself against Mahathir's charges.

But a High Court judge in August 1999 ruled it was Mahathir's right as prime minister to comment on the reasons for the dismissal. Both the Appeal Court and Federal Court have upheld the decision. Anwar is serving a total of 15 years in jail after being convicted for abuse of power and sodomy.

The Federal Court denied his appeal against the conviction for abuse of power in July. He has filed a review against that decision.

Since his sacking, Anwar has continually maintained that he was framed to avert a political challenge to Mahathir. Mahathir has denied this.