The High Court has ordered the auction of several properties belonging to a company owned by cosmetic entrepreneur Datuk Seri Hasmiza Othman, better known as Datuk Seri Vida, to recover RM15.5 million in unpaid Islamic financing.
The decision was made after the court allowed an application by Maybank Islamic to proceed with the sale of the properties.
Court allows bank to proceed with sale of land
According to Harian Metro, High Court Judge Norsharidah Awang ruled that the bank had fulfilled the legal requirements under Section 256 of the National Land Code to enforce the charge on the properties.
In her judgment dated March 4, the judge said the bank had proven that financing facilities were granted to Vida Beauty Sdn Bhd, a company owned by Vida.
The financing was secured using several plots of land in Hulu Kinta, Perak as collateral.
It is not disputed that the financing facilities were granted to the defendant and that the properties stated in the originating summons were legally charged as security for the financing,” the judge reportedly said.
Unpaid financing rose to over RM8.45mil
Court documents showed that Maybank Islamic had granted a Commodity Murabahah Term Financing-i facility amounting to RM4.886 million to Vida Beauty.
The facility was secured using seven lots of land.
After the company failed to repay the financing, the outstanding amount increased to RM8.45 million as of Sept 30, 2022, including accumulated profit and late payment charges.
Another financing facility pushes debt above RM15mil
In a separate but related financing facility, which was secured by another property in Hulu Kinta, the outstanding amount exceeded RM7 million.
This brought the total unpaid financing to more than RM15.5 million, prompting the bank to file another originating summons to obtain an order for sale.
Court dismisses company’s objections
Vida Beauty objected to the application, arguing that the proceedings were flawed because the bank had filed its supporting affidavit outside the time frame set by court rules.
However, Judge Norsharidah rejected the argument, stating that the delay did not invalidate the proceedings.
The Rules of Court 2012 do not provide that failure to file a supporting affidavit within a specific time frame automatically renders the entire proceedings null and void,” she said.
The company also disputed the amount claimed by the bank, stating that the actual debt was much lower than RM8.5 million.
However, the judge ruled that disputes over the exact amount owed do not constitute a valid defence to stop the enforcement of the security.
Bank awarded RM10,000 in legal costs
The court also awarded RM10,000 in legal costs to the bank.
Lawyer Wong Weng Yew represented Maybank Islamic, while Haris Md Nor acted for Vida Beauty.
