Tealive vs Chatime: Malaysian operator to seek reprieve after order to cease operations

PETALING JAYA: After the Court of Appeal's judgement ordering Tealive to cease all operations, the company says it will see a reprieve from the Federal Court.

The Court of Appeal on Wednesday (June 27) granted an interim injunction against Tealive from continuing its operations following an appeal by rival Chatime.

The owner of Chatime, Taiwan-based La Kaffa International Co Ltd, had filed an originating summons to seek an injunction to restrain Loob Holding Sdn Bhd, the owner of Tealive.

Justice Hamid Sultan Abu Backer ruled that the injunction was based on breach of post-franchise terms and the return of its properties.

"This matter is being handled by our lawyers and we will let the due process of law take its course," said Tealive's lawyers in a statement on behalf of the company, on Thursday (June 28).

"We have instructed them to make the necessary application to the courts to allow us to maintain status quo until final settlement of the entire legal process," it said.

Tealive will file for a stay and for leave to appeal to the Federal Court.

The Court of Appeal’s decision overturned the Kuala Lumpur High Court’s dismissal in May last year of an injunction bid by La Kaffa against Loob from starting a similar business.

In December 2016, the agreement between La Kaffa and Loob, which was to last until 2041, was terminated because of the Taiwanese firm’s disagreement on the business direction of Chatime in Malaysia.

Loob Holdings chief executive officer, Bryan Loo, subsequently rebranded all its outlets to Tealive in 2017.