By Dorcas Ting
KUCHING, Feb 25: The High Court here has ruled that Petroliam Nasional Berhad (PETRONAS) is entitled to call on a RM7.95 million bank guarantee issued by Petroleum Sarawak Berhad (PETROS), dismissing PETROS’ originating summons and awarding RM50,000 in costs to PETRONAS.
In his judgment, Judicial Commissioner Datuk Farids Gohim Abdullah held that PETROS had failed to show that PETRONAS’ demand on the bank guarantee was unconscionable or unlawful, affirming the validity of PETRONAS’ commercial claim.
However, the court declined to address the broader constitutional questions raised during the proceedings, noting that such issues fall outside the scope of the originating summons and should instead be determined by the Federal Court of Malaysia.
The constitutional dispute concerns the interplay between the federal Petroleum Development Act 1974 (PDA 1974) and Sarawak’s Distribution of Gas Ordinance 2016 (DGO 2016).
According to counsel, the High Court’s ruling was strictly confined to the commercial aspects, leaving the constitutional validity and relationship between the two laws to the apex court.
The matter is expected to proceed to the Federal Court on March 16, when PETRONAS will apply for leave to have the constitutional questions heard. The application is understood to be opposed.
Separately, the Sarawak government has filed its own petition, which is also anticipated to be considered by the Federal Court.
With the High Court declining to interpret the constitution, all questions concerning the validity and scope of the PDA 1974 and DGO 2016 will now be determined by the Federal Court. — DayakDaily
