Retail: Aeon Big Happy With Court Ruling
Aeon BiG (M) Sdn Bhd is pleased that the Federal Court had dismissed Mega Continental Sdn Bhd’s leave application to appeal.
The decision which was made on April 20 means that Mega Continental does not any right to appeal the case anymore.
In a statement the company said that it had obtained the Penang High Court declaration order on Nov 8, 2019 which was subsequently upheld by the Court of Appeal on Dec 11 last year.
The declaration stated that the agreement to lease signed between AEON BiG and Mega Continental for a property located at Bandar Alor Setar was a monthly tenancy instead of a 10-year lease as the state authority did not grant their consent under Section 433B of the National Land Code 1965 within the required conditional precedent period under the agreement.
The company said on August 6 last year, the Alor Setar High Court set aside the judgment in default obtained by Mega Continental on June 9, 2020 whereby Mega Continental claimed from AEON BiG a judgment sum of RM142 million.
The judgment in default obtained was based on the alleged unlawful termination of the agreement for the then, AEON BiG Alor Setar store.
Subsequently, AEON BiG had filed an application to strike out the aforesaid suit.
This case was transferred to Penang High Court on April 6 with the hearing of this case yet to be fixed.
To uphold and protect the company’s reputation and interest, AEON BiG shall be entitled to take all necessary legal action to preserve its rights in accordance with the law, and hold Mega Continental accountable for the loss of income, damage to reputation and the unnecessary inconvenience caused to AEON’s customers, management and staff, and business alliances.
Meanwhile, despite the challenges the company said it expects to see a rise in its operating profit thanks to its B2B segment which generated a revenue of RM50 million.
For this year, the company is targeting a revenue of RM300 million.
The company is committed towards building the business to achieve better performance and it is confident to
accomplish even better results in the coming years.