The Kelantan government will file leave to appeal against the Court of Appeal's refusal of its appeal to stop the federal government from intervening in its breach of contract suit against Petronas over oil royalty.

Counsel Rishwant Singh, representing the national petroleum corporation, told reporters today that the state government will file the leave in the Federal Court in the next few weeks.

It will file leave to appeal against the Appeal Court's refusal of its second appeal over the  High Court's ruling not to transfer the suit back to the New Commercial Court,  he said.

Therefore, the High Court has set June 30 for case management of the suit pending the hearing of the state government's leave to appeal, Rishwant said after meeting Judge Zabariah Mohd Yusof when the case came up for case management.

On May 26, the Appeal Court, in dismissing the state government's appeal, held that the presence of the federal government in the suit was necessary to ensure that all disputed matters in the case were completely adjudicated.

The Court of Appeal also retained the High Court's order that the suit be tried at the New Civil Court and not in the commercial court where the suit was filed.

The state government is suing Petronas for allegedly breaching the contract on cash payable to Kelantan over oil revenue.

In its statement of claim, the state government demanded outstanding and future cash payments for petroleum produced off the Kelantan coast as set in the petroleum agreement.

- Bernama