Court of Appeal says the federal government would be 'clearly prejudiced' if made to comply with the High Court order before presenting its case on appeal.
In granting the stay order, Justice Zaini Mazlan said Putrajaya would “clearly be prejudiced” if forced to comply with the court’s order without the opportunity to present its case on appeal.
“We also note that the court’s order not only directs negotiations, but also requires payment from the federal consolidated fund within 180 days of the High Court’s order,” he added.
Zaini said there would be serious financial consequences for public funds if the application for a stay was rejected pending the appeal.
“The imposed timelines may not give the parties sufficient opportunity to determine the correct quantum payable,” he added.
The other judges on the panel were Justices Ismail Brahim and K Muniandy.
No order was made as to costs.
Last year, the High Court, in a judicial review filed by the Sabah Law Society (SLS), ruled that the federal government had breached its constitutional duties by failing to honour Sabah’s 40% share of net revenue for the “lost years” of 1974 to 2021.
The court said that no reviews were conducted until 2022.
It also gave the federal government three months to conduct a review with the Sabah government to determine the quantum of the 40% entitlement for the years in question.
It further ordered that an agreement be reached within six months from the date of judgment (Oct 17, 2025), or by April 15.
Senior federal counsel Ahmad Hanir Hambaly appeared for the federal government, while SLS was represented by David Fung and Jeyan Marimuttu.
State attorney-general Brenndon Keith Soh appeared for Sabah. - FMT
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