KUALA LUMPUR, April 6 -- The Court of Appeal in Putrajaya has granted the federal government a stay of execution on a High Court order tied to Sabah's long-contested 40 per cent share of net federal revenue, pausing both negotiations and any payment deadlines while Putrajaya pursues its appeal.

Delivering the ruling, as reported by FMT, judge Mohamed Zaini Mazlan said the government would "clearly be prejudiced" if compelled to comply before its appeal is heard, particularly given the scale and timing of the obligations imposed.

"We also note that the court's order not only directs negotiations, but also requires payment from the federal consolidated fund within 180 days of the High Court's order," he said.

Zaini warned that rejecting ...