
The Paris Court of Appeal ruled on Tuesday that the arbitration court that ordered Malaysia to make the payment to the so-called heirs of Sulu, the erstwhile rulers of the region, did not have jurisdiction in the case.
The dispute is linked to the Sulu heirs’ years-long claims to Sabah. The then-sultanate had leased Sabah to a British company in 1878 and the Borneo state was later absorbed into Malaysia. The Sulu sultanate ruled the islands in the Sulu Archipelago, which are part of Mindanao in today’s Philippines.
A French arbitration court last year ordered Malaysia to pay the Sulu descendants over their claim. The government filed an application to cancel the award in Paris, while a Luxembourg court set aside the legal action payment, Malaysia said in January.
In March, a court in Paris upheld a stay order obtained by Malaysia on enforcement of the award.
Malaysia’s law and institutional reform minister Azalina Othman Said said Tuesday’s decision “implies” that the Paris appeals court will annul the $15 billion award in a subsequent decision.
An attorney for the heirs, Benjamin Siino, disputed that assessment and said the ruling has “no automatic effect” on the actual award that Malaysia is contesting in a parallel lawsuit.
The heirs also said they are considering contesting the decision in France’s top court, according to a statement.