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Decision October 3 on 40pc case: High Court
Published on: Wednesday, August 13, 2025
Published on: Wed, Aug 13, 2025
By: Jo Ann Mool
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Decision October 3 on 40pc case: High Court
On Nov 11, 2022, the High Court granted SLS leave to proceed with the judicial review, while the Attorney General’s Chambers (AGC), acting for the Federal Government, later secured a stay order to halt the High Court from hearing the merits of the case, pending appeal.
Kota Kinabalu: The High Court will deliver on Oct 3 its decision on the Sabah Law Society’s (SLS) substantive judicial review over Sabah’s 40 per cent special grant.

According to SLS counsel Dr David Fung, Judge Datuk Celestina Stuel Galid informed this during a Zoom hearing Tuesday. The decision will be delivered at 9am in open court.

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The court had, on July 7, heard oral arguments by the parties on the substantive merits of the judicial review and fixed Aug 7 for an e-review of the matter.

The SLS filed a judicial review leave application on June 8, 2022, after the Federal Government announced on April 14, 2022 that an agreement had been reached with the State Government, and named the Federal and State governments as the first and second respondents.

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On Nov 11, 2022, the High Court granted SLS leave to proceed with the judicial review, while the Attorney General’s Chambers (AGC), acting for the Federal Government, later secured a stay order to halt the High Court from hearing the merits of the case, pending appeal.

On June 18, 2024, the Court of Appeal dismissed the Federal Government’s appeal against the leave granted to SLS and directed the High Court to fix a date for the full hearing. 

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The Federal Government then applied for leave to appeal the ruling to the Federal Court, but on Oct 17, 2024, the Federal Court dismissed the application.

The SLS is seeking a declaration, among others, that the Federal Government’s failure to hold a second review in 1974 with the State Government was a breach and contravention of its constitutional duty stipulated under Article 112D, Clauses (1), (3) and (4) of the Federal Constitution. 

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It said the 40 per cent entitlement remained due and payable by the Federal Government to the State Government for each consecutive financial year for the period of 1974 to 2021, in which a failure to pay the entitlement was a breach of the fundamental right to property of the Sabah Government and ultimately, of the people of Sabah, as enshrined under Article 13 of the Federal Constitution.

SLS also sought an order of mandamus directed to the respondent to hold another review with the State Government under the provisions of Article 112D of the Federal Constitution, to give effect to the payment of the 40 per cent entitlement for each consecutive financial year from 1974 to 2021 within 30 days, and to reach a decision within 90 days from the date of the order, and that the respondent pays the entitlement to the State Government or as constitutional damages for breach of Article 13 of the Federal Constitution, or both.

Counsel Dr David Fung and Jeyan Marimuttu represented SLS, Senior Federal Counsel (SFC) Ahmad Hanir Hambaly @ Arwi represented the Federal Government and Sabah State Attorney-General Datuk Brenndon Soh represented the State Government.
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