KUALA LUMPUR, May 4 — Case management for Petroleum Sarawak Bhd’s (Petros) appeal over a Kuching High Court ruling involving a RM7.95 million bank guarantee will be heard on June 22 at the Court of Appeal.

According to The Edge, the appeal follows the High Court’s February 25 decision which dismissed Petros’ bid to recover the bank guarantee and declined to rule on related constitutional questions.

Sources said Petros has filed a notice of appeal against the decision by Judicial Commissioner Datuk Faridz Gohim Abdullah, with the matter now before the appellate court.

Meanwhile, on March 16, a single-judge Federal Court panel led by Chief Judge of Malaya Datuk Seri Hashim Hamzah granted Petroliam Nasional Bhd (Petronas) leave to challenge the validity of several Sarawak state laws, opening the door for constitutional issues not addressed by the High Court.

In its written grounds, Faridz had found that the court could not make determinations on the Sarawak Gas Supply Agreement (Sarawak GSA) or related constitutional matters, as Petros had not properly anchored its originating summons under relevant statutory provisions.

The judge noted that Petros did not cite key laws, including the Petroleum Development Act 1974, the Distribution of Gas Ordinance 2016 and the Contracts Act 1950 in its application, adding that the court was not empowered to decide on matters not properly pleaded.

He also pointed out that Petros did not amend its reliefs to reflect changes in circumstances or seek specific declarations on the legality of the Sarawak GSA or the applicability of federal supremacy under Article 75 of the Federal Constitution.

Article 75 provides that federal law prevails over state law in cases of inconsistency.

Separately, Petronas has obtained leave from the Federal Court to challenge the consistency between the PDA 1974 and several Sarawak laws, including those relating to gas distribution, environmental regulation and carbon storage.

In another development, the Sarawak government has also filed a petition questioning the legality of key federal petroleum-related laws.

With multiple overlapping legal challenges now underway, the Federal Court is expected to ultimately determine the constitutional framework governing gas regulation in Malaysia, an issue the Kuching High Court declined to decide.