AEON Faces RM18.7 Million Penalty for Wrongful Lease Termination
KUALA LUMPUR, Dec 18 – The High Court has ruled that AEON Group must pay RM18.7 million in damages to Betanaz Sdn Bhd due to the wrongful termination of a lease agreement. Additionally, AEON has been ordered to pay 5% annual interest on the compensation amount from March 1, 2021, until the full settlement is made.
The court also directed AEON to pay RM200,000 in legal fees to Betanaz within 45 days of the ruling date.
Counterclaims Rejected
In a significant development, the court dismissed AEON Group's counterclaims against Betanaz and Ahmad Zaki Resources Bhd (AZRB), further ordering AEON to pay RM100,000 in legal fees to AZRB.
In an official statement, AZRB, which holds a 51% stake in Betanaz, confirmed their victory in the legal battle over the lease dispute. The company stated that Betanaz would receive compensation amounting to RM18.7 million.
Dispute Background
The dispute dates back to March 2021, when Betanaz filed a lawsuit against AEON, alleging a breach of the lease agreement signed on August 24, 2017. The agreement involved leasing a plot of land in Kuantan, Pahang, for the development and operation of a shopping mall.
AEON argued that the lease agreement was invalid due to Betanaz's alleged failure to meet certain conditions within the stipulated timeframe. AEON's counterclaims for bank guarantees were also dismissed, with damages yet to be determined.
As of now, AEON has not issued a statement regarding the court's decision.
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