Dutch Ruling Against Sulu Heirs Will Have Impact Elsewhere Minister

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The decision of the Dutch courts to dismiss a bid by eight descendants of the Sulu sultanate to enforce a US$14.9 billion (RM69.5 billion) arbitration award against Malaysia will likely have an impact on other parts of the world.
In a statement, Minister in the Prime Minister’s Department (Law and Institutional Reform) Azalina Said Othman said the decision by the Dutch Court of Appeals confirms Malaysia's position that the sham arbitration award should never have taken place and the final arbitration award was null and void.
"The claimants cannot rely on the purported final award in attempting to seize Malaysian assets in the Netherlands.
“Today's landmark judgment will likely render futile any further illegitimate attempts by the claimants and their funders to enforce it in other jurisdictions," said Azalina.
The claimants sought arbitration in Spain after Malaysia ceased an annual payment of RM5,300 to the Sulu sultanate in 2013. Malaysia did not participate in the arbitration process on the grounds that it was illegal.
Spanish courts appointed arbitrator Gonzalo Stampa to hear the matter and decided in favour of the claimants.
Gonzalo StampaHowever, the High Court of Justice of Madrid annulled Stampa's as an arbitrator in the case in June 2021.
Since last year, the claimants have been attempting to enforce the final award in France, Luxembourg and the Netherlands by seizing Malaysian assets.
Apart from the Dutch courts, the French courts have also dismissed the claimants’ bid to enforce the final award in France.
Azalina said the Dutch court recognise Stampa's annulment as an arbitrator and thus, invalidated all of his procedural acts.
"Thus, no arbitral award exists that would be capable of recognition and enforcement.
"The exceptional stay of enforcement of the purported final award in Paris is a further ground for refusal, which renders the sham award incapable of recognition and enforcement in The Netherlands," she said. - Mkini

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