PETALING JAYA: AEON BiG (M) Sdn Bhd announced the Federal Court of Malaysia has dismissed Mega Continental Sdn Bhd’s leave application to appeal to the Federal Court on April 20 over a lease agreement.
It said in a statement that Mega Continental does not have any right to appeal to the Federal Court.
AEON BiG said accordingly, the Penang High Court order obtained by the company on Nov 8,2019 --- subsequently upheld by the Court of Appeal on Dec 11,2020 -- stated the lease agreement was a monthly tenancy instead of a 10-year lease.
This was because 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.
On Aug 6,2020, the Alor Setar High Court had 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 RM142mil.
The judgment in default obtained was based on the alleged unlawful termination of the lease agreement for the AEON BiG Alor Setar store.
Subsequently, AEON BiG had filed an application to strike out the suit.
This case was transferred to Penang High Court on April 6,2021.
The hearing has yet to be fixed.
Meanwhile, AEON BiG, which operates 22 hypermarkets in Malaysia offering hassle-free shopping to shoppers, said this year, the company expects to see an operating profit of two times more than last year.
In 2020, AEON BiG started the business-to-business segment which generated a revenue of RM50mil.
It will continue to focus on this segment, targeting a revenue of RM300mil this year.