KUALA LUMPUR: Malaysia is not surprised that the Sulu sultanate heirs (claimants) in the US$14.92 billion arbitration award failed at the first instance, said Minister in the Prime Minister's Department (Law and Institutional reform) Datuk Seri Azalina Othman Said today.
The District Court of Luxembourg on Jan 23 set aside the attachment order requested by the claimants over the US$14.92 billion arbitration award they won against Malaysia on July 11, 2022.
Azalina said the attachment was based on the purported final award and the purported preliminary award issued by the purported arbitrator Dr Gonzalo Stampa on Feb 28, 2022, and May 25, 2020, respectively as well as on the ex parte exequatur order before the Luxembourg Court of Appeal.
Malaysia immediately applied to the District Court of Luxembourg to obtain interim relief to release the attachment. The hearing took place on Dec 5, 2022, before the district court, she said.
"The District Court of Luxembourg accepted Malaysia's challenge based on the fact that the claimants had, according to the court, voluntarily omitted to reveal their real address.
"The court considered this omission significant and found that the claimant's conduct impeded the service of documents and the enforcement of the potential judgment to be rendered against them," she said here.
According to the court, she said the claimant's conduct constituted a "manifestly illicit hardship" that was detrimental to Malaysia.
"The conduct is typical of the deceitful and fraudulent manner in which the claimants have consistently conducted themselves in their claim against Malaysia.
"It comes as no surprise that the claimant's case failed at the first instance."
Azalina said Malaysia would be relentless in its effort to protect and preserve the nation's interests, sovereign immunity and sovereignty.
She said Malaysia would take all necessary actions to put an end to Sulu sultanate heirs' fictitious claims.
A French court last year ordered Malaysia to pay US$14.92 billion to the Sulu sultanate heirs to honour a colonial-era land deal.
Malaysia, which did not participate in the arbitration proceedings, maintained that the process was illegal.
It obtained a stay against the award's enforcement in France, but the ruling remains enforceable outside France under a United Nations treaty on international arbitration.
Last July, two Luxembourg-based subsidiaries of Petronas were seized by court bailiffs as part of the heirs' efforts to enforce the award.
Following this, Petronas said it would contest any claim on its assets by the heirs of a former Southeast Asian sultan, who are seeking US$14.92 billion in compensation.