PUTRAJAYA: The Federal Court will decide whether a breach-of-contract suit by the Kelantan Government against Petroliam Nasional Berhad (Petronas) should go for full trial or just be decided by way of points of law.
This was made after the court granted leave to appeal to the plaintiff, Kelantan Government, after its counsel, Tommy Thomas, informed the five-member panel that counsels acting for Petronas and the senior federal counsel representing the government had no objection on the leave application.
The panel, chaired by Appeal Court president Tan Sri Md Raus Sharif, also allowed the plaintiff’s application for a stay of proceedings at the Kuala Lumpur High Court, pending final disposal of its appeal on preliminary issues before the trial proper.
Tommy later told reporters that the plaintiff had 14 days to file its appeal before the court, against the decision made by the Court of Appeal.
The other four panel members were Datuk Seri Sulong Matjeraie, Datuk Ahmad Maarof, Datuk Zainun Ali and Datuk Jeffery Tan Kok Hwa.
On April 26, the Court of Appeal dismissed the ruling by the Kuala Lumpur High Court that the suit should be heard and disposed off by way of issues of law.
The court also dismissed the plaintiff’s appeal for access to documents related to the case, following High Court Judge Datin Zabariah Mohd Yusof ordering the parties to first proceed with the suit, in accordance to Order 14A of the Rules of the High Court 1980, without going for full trial.
In the lawsuit filed on Aug 30, 2010, the plaintiff had named Petronas as first defendant.
The federal government, however, succeeded in its intervenor application and was named second defendant.
In its statement of claim, the Kelantan Government demanded that Petronas pay outstanding and future cash payments for petroleum produced off the Kelantan coast, as set in their petroleum exploration agreement.
The state government is also seeking damages and costs. However, it did not specify the total amount of the claim sought from Petronas.
In the suit, the state government said the Kelantan Petroleum Agreement signed on May 9, 1975, clearly stated that Petronas should pay in cash five per cent of oil revenue, either from exploration onshore or offshore.
It said that a clause of the agreement stated that the payment should be made in cash twice a year, on or before March 1, and on or before Sept 1.
In today’s proceedings, Petronas was represented by Tan Sri Cecil Abraham while Senior Federal Counsel Datin Azizah Nawawi appeared for the federal government. — BERNAMA