KUALA LUMPUR 鈥 Malaysia鈥檚 law minister on Thursday said a Luxembourg court had set aside an attempt made by the heirs of a former sultanate to enforce a $15 billion arbitration award they won against Malaysia.
A French court last year had ordered Malaysia to pay $14.9 billion to the heirs of the last sultan of Sulu to honor a colonial-era land deal. Malaysia, which did not participate in the arbitration proceedings, maintains the process is illegal.
It obtained a stay against the award鈥檚 enforcement in France, but the ruling remains enforceable outside France under a United Nations treaty on international arbitration.
Malaysia鈥檚 law minister Azalina Othman Said said the District Court of Luxembourg on Tuesday had set aside a request for an 鈥渁ttachment order鈥 made by the Sulu heirs.
Ms. Azalina did not provide details of the court decision in a statement that described it as a 鈥渟ignificant victory鈥 for Malaysia.
Paul Cohen, a lawyer for the heirs, said the court ruling had 鈥渘o bearing on the status of the arbitral award, in Luxembourg itself or elsewhere.鈥
鈥淭his is a preliminary ruling, on a preliminary measure, in one of several jurisdictions where we are seeking enforcement,鈥 he said in an email to Reuters.
鈥淲e have yet to even see the ruling 鈥 the same is true of Malaysia 鈥 so we鈥檙e not sure on what basis Malaysia is seeing fit to comment at this time.鈥
The Luxembourg court could not immediately be reached for comment.
Last July, two Luxembourg-based subsidiaries of Malaysian state oil firm Petronas were seized by court bailiffs as part of the heirs鈥 efforts to enforce the award.
Ms. Azalina did not say whether the court decision was related to the seizure of the Petronas units.
鈥淭his decision vindicates the government鈥檚 policy to vigorously defend Malaysia in every forum to ensure that Malaysia鈥檚 interests, sovereign immunity and sovereignty are protected and preserved at all times,鈥 Ms. Azalina said in a statement.
Petronas has said it would contest any claims made on its Assets. 鈥 Reuters
