KUALA LUMPUR (April 28): The Kuching High Court on Monday rejected Petroliam Nasional Bhd’s (Petronas) request to delay the hearing of a lawsuit filed by Sarawak Petroleum Bhd’s (Petros) over a RM7.95 million bank guarantee claim related to gas supply.

The court, presided over by judge Leonard David Shim, scheduled the suit's hearing for June 11, based on documents sighted by The Edge. 

The judgement delivered on Monday, with costs to be determined later, follows a hearing held on April 23 to consider Petronas' request to delay a lawsuit filed by Petros last year.

According to Utusan Borneo, the hearing, initially set for April 18, was postponed after Judicial Commissioner Datuk Faridz Gohim Abdullah approved the delay.

His decision followed requests from both the federal and Sarawak governments to participate as amici curiae (friends of the court) and provide constitutional and legislative advice.

Meanwhile, Borneo Post reported that the Kuching High Court heard on April 23 that Petronas’ application to stay proceedings on Petros’ originating summons (OS) was an attempt to delay the case and prejudice Petros.

Petros’ legal representative Sim Hui Chuang asserted that Petronas’ stay application was not made in good faith, given that Petronas had already demanded and received payment under the guarantee, the report said.

Sim contended that by seeking to delay the Kuching OS in favour of an ongoing OS in Kuala Lumpur (KL) — which is still at an early stage — Petronas intends to impede and postpone the resolution of the Kuching case and delay the return of the funds it had taken.

The KL OS is reportedly an interpleader action brought by Shell MDS (Malaysia) Sdn Bhd (SMDS) against both Petronas and Petros. The KL High Court granted SMDS’ interlocutory application for an injunction against both parties, a decision which is currently under appeal.

The Shell SDMS case will determine the rightful recipient of payments for gas supplied to the company.