KOTA KINABALU : The Sabah Law Society refers to the decision delivered (online via zoom hearing today) by the Court of Appeal on the Federal Government’s application for a stay of execution of the High Court’s order dated 17 October 2025.
The Court of Appeal has allowed the stay application pursuant to section 44 of the Courts of Judicature Act 1964.
The Court held that it had jurisdiction to entertain the application under section 44, notwithstanding the procedural objection raised, and that there were special circumstances warranting a stay pending the disposal of the appeal.
In reaching its decision, the Court considered that the timelines imposed by the High Court — requiring a review within 90 days and an agreement within 180 days —may not afford sufficient opportunity for the proper determination of the quantum payable, particularly having regard to the scope of the review exercise spanning multiple financial years from 1974 to 2021.
The Court further took the view that the enforcement of payments of such magnitude prior to the disposal of the appeal could result in a fait accompli, thereby rendering the appeal nugatory and undermining the integrity of the appellate process.
The Court also noted the indication by the applicant that steps are being taken to expedite the hearing of the appeal.
The effect of the order is to preserve the position pending the disposal of the appeal. It does not displace the findings of the High Court, including its determination that there had been a failure to conduct the periodic review required under Article 112D of the Federal Constitution.
The Society emphasises that this decision is procedural in nature. The substantive constitutional issues, including the interpretation and proper implementation of Article 112D of the Federal Constitution, remain to be determined in the appeal.
The Sabah Law Society will continue to participate in the proceedings and act in accordance with the law and the record before the Court.By Datuk Mohamed Nazim Bin Maduarin-President Sabah Law Society -pr/BNN
