Anifah, 61, who was also Foreign Minister, said that former KFC deputy executive chairman Datuk Ishak Ismail approached him at Hotel Sentral while he was smoking with Beluran MP Datuk Ronald Kiandee and another Sabah MP in May, 2008.
"I was taken aback and angry. I felt cheap as I am the MP for three terms and I am committed to Barisan Nasional," he said when testifying in a RM100mil suit filed by Anwar against him.
Anwar filed the suit against Anifah @ Haniff Amman over allegedly libellous statements made against him abroad.
The PKR adviser claimed that the words uttered by Anifah that day implied that he was a dishonest person.
On Jan 6, 2011, a High Court had struck out the suit following an application by Anifah and the Government.
The Court of Appeal had on Jan 25, 2013, allowed Anwar's appeal to reinstate the suit against Anifah in the latter's personal capacity.
The appellate court, however, dismissed Anwar's appeal to reinstate his suit against Anifah in his official capacity as Foreign Minister and also against the Government.
In his suit, Anwar claimed that he suffered considerable distress, anxiety and embarrassment, entitling him to aggravated and exemplary damages.
Anwar is also applying to get an injunction to restrain Anifah from further uttering, writing or publishing the said words.