Court awards $15 billion to former Sultan’s heirs against Malaysia
Court awards $15 billion to former Sultan’s heirs against Malaysia
Robert Besser
20 Jul 2022, 17:24 GMT+10
- To enforce a $14.9 billion arbitration award won against Malaysia, the lawyers of the heirs of a 19th century sultanate are seeking to seize Malaysian government assets around the world
- In February, a French arbitration court ordered Malaysia to pay the Filipino descendants of the last Sultan of Sulu to settle a dispute over a colonial-era land agreement
- Last week, Malaysia said, that enforcement of the award could infringe upon the country’s sovereignty, after which the Paris Court of Appeals froze the ruling
PARIS, France: In a bid to enforce a $14.9 billion arbitration award won against Malaysia, and despite a temporary freeze on the case handed down by a French court, the lawyers of the heirs of a 19th century sultanate told Reuters they are seeking to seize Malaysian government assets around the world.
In February, a French arbitration court ordered Malaysia to pay the Filipino descendants of the last Sultan of Sulu to settle a dispute over a colonial-era land agreement.
Last week, Malaysia said, that enforcement of the award could infringe upon the country’s sovereignty, after which the Paris Court of Appeals froze the ruling.
Law minister Wan Junaidi Tuanku Jaafar said the stay would prevent the award from being enforced while Malaysia, which had not previously participated in the arbitration, is working to set aside the ruling.
However, the lawyers for the sultan’s heirs said the February ruling remains legally enforceable outside France, as it is covered by the UN’s New York Convention signed by 170 countries.
Paul Cohen, the heirs’ lead co-counsel, of London-based law firm 4-5 Gray’s Inn Square, said, “The ‘stay’ that seems to comfort the Malaysian government temporarily delays local enforcement in one country, France itself. It does not apply to the other 169,” as reported by the Associated Press.
Elisabeth Mason, another lawyer for the heirs, said that with some exceptions, such as diplomatic premises, any Malaysian government-owned assets are party to the UN convention, which is eligible for the purposes of enforcing the award.
As part of efforts to enforce the award, last week the heirs moved to seize two Luxembourg-based companies owned by Malaysian state oil firm Petronas.
Petronas said the seizure is baseless and it will defend its legal position, adding that the companies had earlier divested their assets.
Lawyers for the heirs said the companies were now under the control of bailiffs in Luxembourg, pending an appeal by Petronas.
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