Malaysia says court set aside request by heirs of sultan to enforce US$15 billion arbitration award
- A French court last year ordered Malaysia to pay sultan of Sulu heirs in a colonial-era land deal; a Luxembourg court has now set aside attempts to enforce it
- Decision vindicates government’s policy to defend Malaysia’s interests, ensuring sovereign immunity and sovereignty are protected and preserved, minister says
Malaysia’s law minister on Thursday said a Luxembourg court had set aside an attempt made by the heirs of a former sultanate to enforce a US$15 billion arbitration award they won against Malaysia.
A French court last year had ordered Malaysia to pay US$14.9 billion to the heirs of the last sultan of Sulu to honour a colonial-era land deal. Malaysia, which did not participate in the arbitration proceedings, maintains the process is 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.
Malaysia’s law minister Azalina Othman Said said the District Court of Luxembourg on Tuesday had set aside a request for an “attachment order” made by the Sulu heirs.
It was not immediately clear what impact, if any, the decision would make on the arbitration award. Azalina did not provide details of the court decision in a statement that described it as a “significant victory” for Malaysia.
A lawyer for the heirs did not immediately respond to an emailed request for comment and the Luxembourg court could not immediately be reached for confirmation of the decision.