KUALA LUMPUR: The legal dispute over oil royalty claims between the Kelantan government and Petroliam Nasional Bhd (Petronas) has been resolved.
The Kelantan government dropped its suit Tuesday after the matter was settled out of court.
Counsel Aleeya Elyana Ahmad Mahreez, who acted for the state government, told reporters outside the court the decision to not go on with the suit was made through a notice on May 13.
She said, however, there was no order given over the state government’s suit against the federal government, which it named as second defendant.
Aleeya Elyana was speaking after the matter came up for case management before High Court judge Ahmad Bache in chambers.
Senior federal counsel Siti Asmath Che Man, who acted for Petronas, was also present during matters in chamber.
On Aug 30, 2010, the state government filed the suit naming Petronas as the defendant alleging that the company had violated the royalty payment contract over petroleum revenue.
The state government had sought outstanding payments and also future payments generated from the petroleum produced by Kelantan.
In the suit, the state government had named Petronas as the sole defendant.
However, the federal government then succeeded in its bid to become an intervenor and named as the second defendant in the suit.
In July 2014, the Federal Court ruled that the suit should be remitted back to the High Court for a legal decision, per Rule 14A of the Rules of Court 2012.