This article first appeared in The Edge Financial Daily on May 3, 2018

KUALA LUMPUR: The High Court has ruled in favour of WCT Holdings Bhd against AEON Co (M) Bhd in a case involving the lease renewal for AEON Mall Bukit Tinggi. However, the chapter is far from over as AEON Co intends to appeal against the decision.

Both parties were locked in a court battle started in November 2017, when WCT announced that AEON Co had sued its indirect wholly-owned subsidiary Gemilang Waras Sdn Bhd on the lease renewal for the mall in Klang, Selangor.

A month later, WCT’s unit filed a counterclaim for vacant possession of the leased property and damages to be paid in the form of doubled rental amounting to RM4.84 million per month.

Gemilang Waras alleged that AEON Co’s continued occupation of the property constituted a trespass after the lease agreement’s expiration.

WCT said yesterday in a Bursa Malaysia filing that the High Court ruled that there was no renewal of the lease which expired on Nov 23, 2017.

“WCT’s board of directors wishes to inform that the Kuala Lumpur High Court has delivered its judgement on April 27, 2018, in favour of Gemilang Waras Sdn Bhd, dismissing AEON Co (M) Bhd’s suit via its originating summons and allowing the defendant’s counterclaim,” WCT said in its filing yesterday.

As such, AEON Co has been asked to vacate the shopping centre, and pay Gemilang Waras damages calculated from Nov 23, 2017 to the date of vacant possession of the lease property. AEON Co has also been ordered to pay WCT’s legal cost of over RM10,000.

However, AEON Co is said to have informed the High Court that it intends to file an appeal against the decision, as well as a formal application for stay of execution pending the appeal.

“Gemilang Waras will oppose any appeal and any application for stay which AEON Co might file and will take the necessary legal steps to validly enforce the decision,” WCT added.

The group said it will make further announcements of any material development arising from the above proceeding as and when necessary.

WCT shares edged up one sen or 0.81% yesterday to RM1.24, with a market capitalisation of RM1.76 billion. AEON Co settled unchanged at RM2.02, with a market value of RM2.84 billion.