KOTA KINABALU, May 15 -- The Court of Appeal here will hear the federal government's appeal against a lawsuit by the Sabah Law Society (SLS) to compel it to pay the state 40 per cent of derived revenue.

The controversial case is set to be heard tomorrow after a postponement of eight months from September last year.

SLS first filed the application for judicial review on June 9, 2022, to overturn the federal government's gazette of an RM125.6 million annual grant for Sabah, arguing that it violated the state's revenue rights under the Malaysia Agreement 1963 (MA63).

The federal government is named as the first respondent while the Sabah state government is the second respondent.

The judicial review is to compel the federal government to...