High Court Dismisses Petros’ Bid To Challenge RM7.95 Mln Bank Guarantee

KUCHING, Feb 25 (Bernama) -- The High Court here today dismissed a Petroleum Sarawak Bhd’s (Petros) application to challenge a bank guarantee claim made by Petronas amounting to RM7.95 million.

 Petronas’ counsel, Datuk Dr Cyrus Das, said the judge held that Petros had failed to prove that the call on the bank guarantee by Petronas was unconscionable or unlawful.

“It means that the call on the bank guarantee by Petronas has been held to be valid,” he told reporters after the proceedings.

The case was presided over by Judge Datuk Faridz Gohim Abdullah, with Sarawak Legal Counsel Datuk Seri JC Fong appearing for Petros.

Meanwhile, on the constitutional issue raised, Cyrus said the court ruled that such matters fell outside the scope of the originating summons.

He said the judge ruled that the proper forum to determine the constitutionality of the Petroleum Development Act 1974 (PDA 1974) and Sarawak’s Distribution of Gas Ordinance 2016 (DGO 2016) is the Federal Court.

“The court decided that the constitutional questions surrounding the PDA 1974 and DGO 2016 are therefore to be determined at the federal level. On March 16, Petronas will apply for leave to refer the matter to the Federal Court,” he said.

The court also ordered Petros to pay RM50,000 in legal costs to Petronas.

Previously, Petros had filed an originating summons in the Kuching High Court to stop Petronas from calling on a RM7.95 million bank guarantee, arguing that Petronas lacked the necessary licence under Sarawak’s DGO 2016 to operate in the state.

-- BERNAMA