Cosmetics entrepreneur Datuk Seri Hasmiza Othman, better known as Datuk Seri Vida, has failed in her bid to overturn a RM15.5 million default judgment obtained by Maybank Islamic over outstanding loans.
High Court Judge Norsharidah Awang dismissed the application by Vida and her company, Vida Beauty Sdn Bhd, on the grounds that the applicants failed to demonstrate a bona fide defence and that the default judgment had been obtained in proper legal order.
The judgment was recorded after the defendants did not respond or appear within the stipulated period, allowing the bank to secure a judgment without a full trial.
Background Of The Case
Court documents show the dispute arose from two Commodity Murabahah Term Financing-i (CMTF-i) facilities totaling RM8.946 million granted to Vida Beauty in October 2017, with a repayment tenure of 15 years. Vida also signed personal guarantees for both facilities.
The bank terminated the facilities after the defendants failed to make monthly repayments and demanded full settlement, including profits and late charges. On January 6, 2023, a default judgment of RM15,520,708.91 was recorded against the defendants. In December, the defendants filed an application to set aside the judgment and sought an extension to file a defence, claiming improper service of the writ and asserting they had a meritorious defence. They also argued that the bank’s claim was premature and included profits not yet earned, as well as issues relating to ibra’ (rebates).
Court Decision
Judge Norsharidah ruled that the 11-month delay in filing the application was unreasonable and inadequately explained. She emphasised that while the court has discretion to grant extensions, it is not automatic and must be supported by sufficient reasons.
The court found that the writ had been served in accordance with the financing agreement and guarantees, which permitted service via prepaid registered post to the contract address. “Actual receipt is not required when service is made according to contractual terms and the Court Rules. The financing agreement clearly provides that upon default, the full bank sale price becomes immediately payable,” she said.
The judge concluded that the defendants failed to present any valid defence for trial, and granting the application would undermine finality in proceedings and commercial certainty. The court also awarded RM5,000 in costs to the bank.
Wong Weng Yew represented Maybank Islamic, while Haris Md Nor acted for the defendants.
