The Kelantan government escaped paying RM1 billion including interests when the Federal Court dismissed a claim by timber company Syarikat Kemajuan Timbermine Sdn Bhd.

Kelantan Menteri Besar Ahmad Yaakob clarified that the decision favoured the Kelantan government, unlike what is reported in several news portals yesterday.

"Alhamdulillah, with the Federal Court decision the state is no longer bound by the High Court decision to pay more than RM1 billion including interests," Ahmad ( left ) said in a statement.

Timbermine had in 2004 filed a RM840 million claim against the Kelantan government for alleged breach of a 1964 logging concession agreement and a supplementary agreement in 1965.

However, the firm's claim is time-barred because the concessions were terminated on March 18, 1975.

Civil suits involving land matters can only be filed within 12 years of the dispute.

Critics blame logging in Kelantan for the worst-ever floods in the state last month which displaced tens of thousands of people.

This has been vehemently denied by the state government.