Court of Appeal Grants Stay in Federal Government’s Application, Says Sabah Law Society

6 April 2026

KOTA KINABALU: The Court of Appeal has granted the Federal Government’s application for a stay of execution of the High Court order dated 17 October 2025, according to the Sabah Law Society.

In a statement issued today, its President, Datuk Mohamed Nazim Maduarin, said the decision was delivered during an online hearing conducted via Zoom.

The appellate court allowed the application pursuant to Section 44 of the Courts of Judicature Act 1964.

He said the Court of Appeal ruled that it had the jurisdiction to hear the application under Section 44, notwithstanding procedural objections raised, and found that special circumstances justified granting the stay pending the disposal of the appeal.

“The court took into account that the timelines imposed by the High Court, requiring a review within 90 days and an agreement within 180 days, may not provide sufficient time for a proper determination of the quantum payable,” he said.

The court noted that the review exercise spans multiple financial years from 1974 to 2021, which necessitates a more comprehensive assessment.

Nazim added that the court also considered the potential consequences of enforcing payments of such magnitude before the appeal is heard.

“The enforcement could result in a fait accompli, rendering the appeal nugatory and undermining the integrity of the appellate process,” he said.

The court further acknowledged the Federal Government’s indication that steps are being taken to expedite the hearing of the appeal.

Nazim explained that the effect of the stay order is to preserve the status quo pending the outcome of the appeal and does not affect the High Court’s findings, including its determination that there had been a failure to conduct the periodic review required under Article 112D of the Federal Constitution.

He emphasised that the ruling is procedural in nature and that substantive constitutional issues, including the interpretation and implementation of Article 112D, remain to be decided by the appellate court.

“The Sabah Law Society will continue to participate in the proceedings and act in accordance with the law and the record before the court,” he said.