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Dec 7 set for Kelantan-Petronas oil royalty suit

KUALA LUMPUR: The High Court stayed the Kelantan government's oil royalty breach-of-contract suit against Petroliam Nasional Bhd (Petronas).

Judge Datuk Rosnaini Saub allowed the application by the state government to stay the matter pending disposal of its related appeal at the Court of Appeal.

The state government is appealing the court's rejection of its bid to include 14 additional legal questions in the suit.

On April 10, Rosnaini did not allow the questions that touch on the state government's rights over petroleum onshore and offshore Kelantan before implementation of the Petroleum Development Act 1974 and the Kelantan Agreement and Kelantan Grant.

The Act came into force on Oct 1, 1974, and the Agreement was executed on May 9, two years later.

The state government's counsel Sitpah Selvaratnam, who confirmed the outcome of the chamber matter today, said that the appeal would be heard by the Court of Appeal on Dec 7.

Counsel Rishwant Sing acted for Petronas while senior federal counsel M. Kogilambigai appeared for the federal government, a co-defendant in the suit.

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