AEON Co. (M) Bhd will seek leave to appeal to the Federal Court after the Court of Appeal upheld a High Court ruling ordering the retailer to pay RM18.68 million to Betanaz Properties Sdn. Bhd. in a long-running property dispute.
The Japan based department store said the Court of Appeal on July 22 affirmed the High Court’s decision dated Dec 16, 2024, which allowed Betanaz’s alternative claim of RM18.68 million together with interest.
The appellate court, however, dismissed Betanaz’s larger claim of RM59.30 million, while also rejecting AEON’s counterclaim against Betanaz and Ahmad Zaki Resources Berhad (AZRB).
The court ordered AEON to pay legal costs of RM60,000 to Betanaz and RM30,000 to AZRB, subject to allocatur at four per cent. At the same time, Betanaz was ordered to pay RM50,000 in legal costs to AEON, also subject to allocatur.
The Court of Appeal further directed that the issue of damages arising from an earlier ex parte injunction involving a bank guarantee of RM174,240 be referred back to the High Court for assessment.
It also ordered that the judgment sum of RM18.68 million, together with accrued interest of RM3.64 million as at Jan 22, 2025, currently held in the stakeholder account of Betanaz’s solicitors, be released in satisfaction of the judgment.
Following the decision, AEON made an oral application for a stay of execution pending its intended appeal to the Federal Court. The Court of Appeal directed the company to file a formal application for the stay.
AEON said it will now file an application for leave to appeal to the Federal Court together with a formal application to stay execution of the Court of Appeal’s judgment.
The company expects the financial impact to be limited to the additional interest accruing on the judgment sum from Jan 23, 2025 onwards, as well as the legal costs awarded by the Court of Appeal.
The amount of damages, if any, relating to the earlier injunction over the RM174,240 bank guarantee cannot yet be determined, as it will depend on any losses that Betanaz is able to establish during the High Court’s assessment.
AEON added that the litigation is not expected to have any operational impact on the company and said it will make further announcements should there be any material developments in the case.
