The High Court in Kuching dismissed Petroleum Sarawak Bhd’s bid to block a RM7.95 million bank guarantee claim by Petronas, ordering Petros to pay legal costs.

KUCHING: The High Court today dismissed Petroleum Sarawak Bhd’s application to challenge a RM7.95 million bank guarantee claim made by Petronas.

Judge Datuk Faridz Gohim Abdullah ruled that Petros had failed to prove the call on the guarantee was unconscionable or unlawful.

Petronas’ counsel, Datuk Dr Cyrus Das, said the ruling validated the national oil company’s action. “It means that the call on the bank guarantee by Petronas has been held to be valid,” he told reporters.

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

On constitutional issues raised by Petros, the court ruled they fell outside the scope of the originating summons. Cyrus said the judge determined the proper forum for such matters 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,” he explained.

Petronas will apply for leave to refer the constitutional questions to the Federal Court on March 16.

Petros had previously filed an originating summons to stop Petronas, arguing the national oil company lacked the necessary licence under Sarawak’s Distribution of Gas Ordinance 2016 to operate in the state.

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

 The Sun Malaysia