The High Court has ordered the auction of several properties belonging to a company owned by cosmetic entrepreneur Hasmiza Othman, widely known as Datuk Seri Vida, to recover more than 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 used as collateral for financing granted to Vida Beauty Sdn Bhd.
High Court Judge Norsharidah Awang, in a judgment dated March 4, ruled that the bank had met the legal requirements under National Land Code to enforce the charge on the properties.
According to court findings, the Islamic financing facilities had been granted to Vida Beauty Sdn Bhd, a company owned by Hasmiza, and were secured using several plots of land located in Hulu Kinta, Perak.
“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 said in her ruling.
Financing Facility And Rising Debt
Court documents revealed that Maybank Islamic had previously granted a Commodity Murabahah Term Financing-i facility amounting to RM4.886 million to the company.
The facility was secured with seven separate land lots in Hulu Kinta.
However, after the company failed to repay the financing, the outstanding amount rose to RM8.45 million as of September 30, 2022, taking into account accumulated profit and late payment charges.
Additional Financing Pushes Debt Above RM15.5 Million
In a separate but related financing arrangement secured by another property in the same area, the outstanding balance exceeded RM7 million.
Combined, the unpaid financing from both facilities surpassed RM15.5 million, prompting the bank to file another originating summons seeking a court order for the sale of the charged properties.
Court Rejects Company’s Objection
Vida Beauty opposed the application, arguing that the proceedings were flawed because the bank had filed its supporting affidavit beyond the timeframe stipulated under court rules.
However, Judge Norsharidah dismissed 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, insisting that the actual debt owed was significantly lower than RM8.5 million.
Nevertheless, the judge ruled that disputes over the precise amount owed do not constitute a valid defence to prevent the enforcement of the bank’s security over the properties.
Legal Costs Awarded To Bank
The court also ordered Vida Beauty to pay RM10,000 in legal costs to Maybank Islamic.
Lawyer Wong Weng Yew represented the bank in the case, while Haris Md Nor acted for Vida Beauty.
