The Kelantan government has filed an application today to reverse the transfer of its suit against Petronas which at present is at the High Court's Civil division to the Commercial Court.

Originally, the case was placed in the Commercial Court when it was filed last year by Menteri Besar Nik Abdul Aziz Nik Mat.

The case had been transferred to several judges, before being placed in the civil court.

pas muktamar 55 husam musa 050609 In the Kelantan government’s affidavit filed by its representative and state exco member Husam Musa ( right ), the transfer in January was not made based on a formal application by any party to the suit.

“Kelantan is aggrieved that the decision to transfer was made administratively and without its knowledge or consent, and without it being given an opportunity of being heard.

“Accordingly, it is a wrong decision in law and ought to be rectified,” read Husam’s affidavit, which was filed this afternoon.

According to Husam’s affidavit, the plaintiff’s counsel was told by the court registrar on Jan 18 during case management that the case had been transferred to the civil courts.

Upon enquiry by the plaintiff’s counsel, the court registrar said that the suit was transferred because it involves constitutional issues.

“This was the first time that Kelantan... was informed of the said transfer,” read the affidavit.

High Court judge Justice Zabariah Mohd Yusof has fixed March 22 to hear an application by the federal government, which has applied to be the second defendant (intervener) in the suit.

Bid for application to also be heard on March 22

Husam, when contacted, said following today’s filing the Kelantan government is hoping this application will be heard on the same day, March 22, by Justice Zabariah.

The case was originally heard before Justice Nallini Pathmanathan of the Commercial Court.

The suit against Petronas was filed on Aug 30 last year after numerous failed attempts to convince the federal government of its apparent contractual obligations to pay the state billions in oil royalty.

In the Kelantan government’s statement of claim, the state is entitled to five percent of the petroleum won and saved on-shore and off-shore, in accordance with the Petroleum Development Act 1974 (PDA).

azlan This was part of the agreement signed between then-Kelantan menteri besar Mohamed Nasir and Petronas founding chairperson, Tengku Razaleigh Hamzah.

The state is arguing that there are four off-shore oil projects within Kelantan’s waters and thus Petronas is obligated, according to the PDA, to make cash payments twice annually.

Previously, Husam claimed that RM800 million is owed to Kelantan annually from the Kelantan-Thailand joint development area alone.

The state government had written to Petronas late last year, but received a negative response from the company.