Court of Appeal judges Datuk Ravinthran N. Paramaguru, Datuk Mohd Nazlan Mohd Ghazali and Datuk Dr Choo Kah Sing delivered the ruling via online proceedings.
Justice Ravinthran, who read out the decision, directed the High Court to fix a date for full hearing of the judicial review application.
The federal government was appealing against the Kota Kinabalu High Court's decision on Nov 11, 2022 to grant SLS leave to seek a judicial review of the matter to compel the return of 40 per cent of federal revenue earned from the state according to the Federal Constitution.
On Nov 11, 2022, Justice Ismail Brahim granted SLS's application for leave for the judicial review, ruling that SLS had locus standi for judicial review as it was a public interest litigation.
The Attorney General's Chambers (AGC) obtained a stay order to stop the High Court from hearing the merits of the case pending the appeal.
SLS filed the judicial review application in 2022 to overturn the federal government's gazette of a RM125.6 million annual grant for Sabah, claiming that it violated the state's revenue rights under the Malaysia Agreement 1963 (MA63).
Delivering the unanimous decision, Justice Ravinthran said the SLS has at the very least established local standi for judicial review as it is clearly a public interest litigation taken for the benefit of the public.
He said it was not taken on personal grounds or grievances of the SLS.
The judge further said the issue in the judicial review application involves high constitutional importance and it was taken to purportedly indicate a constitutional right accorded to the state of Sabah and therefore by extension for the benefit of the people.
"Whether there is merit in this application (judicial review) or otherwise is a matter that should be addressed in the full hearing (at the High Court)," he said.
