Court rules in favour of Ahmad Zaki’s unit in tenancy dispute with Aeon Co

Dec 18, 2024

KUALA LUMPUR (Dec 17): The High Court has ruled in favour of Ahmad Zaki Resources Bhd’s (KL:AZRB) 51%-owned unit, Betanaz Properties Sdn Bhd, in a suit against Aeon Co (M) Bhd (KL:AEON) over a tenancy agreement dispute dating back three years.

According to a bourse filing by AZRB, the court, in delivering its decision on Monday (Dec 16), found that Aeon “wrongfully terminated” Betanaz’s tenancy agreement and ordered the department store and mall operator to pay RM18.7 million in damages, with interest at 5% per annum from March 1, 2021, until full payment.

Aeon was also ordered to pay RM200,000 in costs to Betanaz within 45 days from the date of the judgment. In addition, the court dismissed Aeon’s counterclaims against Betanaz and AZRB and ordered Aeon to pay RM100,000 in costs to AZRB.

AZRB also noted that Aeon’s claims in a separate bank guarantee suit were similarly dismissed, with a date to be set for damages assessment.

The dispute arose in March 2021, when Betanaz sued Aeon for breaching the Tenancy Agreement both parties entered into on Aug 24, 2017, for the lease of a plot in Kuantan to construct and operate a commercial shopping complex.

Aeon subsequently filed a counterclaim against Betanaz and AZRB for failing to meet the conditions precedent before the expiration of the conditional periods, which resulted in the tenancy agreement becoming void.

At the time of writing, Aeon had not responded to the court’s decision or disclosed any information to the bourse operator.

AZRB’s shares settled half a sen, or 2.2%, lower at 22.5 sen on Tuesday, giving it a market capitalisation of RM144.7 million.

Shares in Aeon, meanwhile, remained unchanged at RM1.47, valuing the company at RM2.06 billion.

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Source: EdgeProp.my