Malaysia says Luxembourg court sets aside request to enforce $15B arbitration award

KUALA LUMPUR — Malaysia’s regulation minister on Thursday stated a Luxembourg court had set aside an try made by the heirs of a former sultanate to enforce a $15 billion arbitration award they received towards Malaysia.

A French court final 12 months had ordered Malaysia to pay $14.9 billion to the heirs of the final sultan of Sulu to honor a colonial-era land deal. Malaysia, which didn’t take part within the arbitration proceedings, maintains the method is illegitimate.

It obtained a keep towards the award’s enforcement in France, however the ruling stays enforceable outdoors France underneath a United Nations treaty on worldwide arbitration.

Malaysia’s regulation minister Azalina Othman Stated stated the District Court of Luxembourg on Tuesday had set aside a request for an “attachment order” made by the Sulu heirs.

Ms. Azalina didn’t present particulars of the court determination in an announcement that described it as a “significant victory” for Malaysia.

Paul Cohen, a lawyer for the heirs, stated the court ruling had “no bearing on the status of the arbitral award, in Luxembourg itself or elsewhere.”

“This is a preliminary ruling, on a preliminary measure, in one of several jurisdictions where we are seeking enforcement,” he stated in an e-mail to Reuters.

“We have yet to even see the ruling — the same is true of Malaysia — so we’re not sure on what basis Malaysia is seeing fit to comment at this time.”

The Luxembourg court couldn’t instantly be reached for remark.

Final July, two Luxembourg-based subsidiaries of Malaysian state oil agency Petronas had been seized by court bailiffs as a part of the heirs’ efforts to enforce the award.

Ms. Azalina didn’t say whether or not the court determination was associated to the seizure of the Petronas items.

“This decision vindicates the government’s policy to vigorously defend Malaysia in every forum to ensure that Malaysia’s interests, sovereign immunity and sovereignty are protected and preserved at all times,” Ms. Azalina stated in an announcement.

Petronas has stated it could contest any claims made on its Property. — Reuters

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