THE High Court in Kuching today dismissed an application by Petroleum Sarawak Bhd (Petros) to challenge a bank guarantee claim by Petroliam Nasional Berhad (Petronas) amounting to RM7.95 million.
Counsel representing Petronas, Datuk Dr Cyrus Das, said the judge ruled that Petros had failed to prove that the bank guarantee claim was improper or unlawful.
“This means the bank guarantee claim by Petronas is recognised as valid,” he said.
Constitutional Issues Deemed Outside Scope
Cyrus said the court also ruled that the constitutional issues raised by Petros fell outside the scope of the originating summons it had filed.
He added that the appropriate forum to determine constitutional questions relating to the Petroleum Development Act 1974 (PDA 1974) and the Sarawak Gas Distribution Ordinance 2016 (DGO 2016) is the Federal Court.
“On 16 March, Petronas will apply for leave to refer the matter to the Federal Court,” he said.
Petros Ordered to Pay Costs
The court also ordered Petros to pay legal costs of RM50,000 to Petronas.
Previously, Petros had filed an originating summons at the Kuching High Court to prevent Petronas from claiming the bank guarantee — on the grounds that the national oil company did not hold a valid licence under DGO 2016 to operate in Sarawak.
Source: SinarHarian
