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Mary Chia says unit will not appeal against dismissal order
MARY Chia Holdings Limited announced on Wednesday that its wholly owned subsidiary Mary Chia Beauty & Slimming Specialist Pte Ltd (MCBSS) will not be proceeding with a further appeal against the court's decision on its dismissal order.
The court had dismissed MCBSS's appeal to set aside the final award for a lawsuit filed by Slim Beauty House Co Ltd (SBH) against MCBSS over a joint venture that turned sour.
Giving an update on the legal case, Mary Chia said that MCBSS's solicitors will release the judgment sum to SBH's solicitors. MCBSS will also pay S$12,500 and reasonable disbursements under the court's dismissal order to SBH.
MCBSS has incurred about S$100,000 in legal fees over the arbitration proceedings and the application to set aside the final award.
All these costs add up to S$700,000, which is expected to have a material impact on the group's consolidated net tangible assets per share and earnings per share for the financial year ending March 31, 2018.
The arbitration proceedings were initiated by SBH on Aug 19, 2016 against MCBSS in a dispute arising from the joint venture between both parties. SBH had wanted to claim S$4.81 million in damages.
But MCBSS did not believe that the purported termination of the joint venture was justified, and felt that the claims against MCBSS for alleged breaches of the joint venture agreement had no merit.
But in July, MCBSS was ordered by the court to pay more than S$580,000 in damages and costs. The Singapore International Arbitration Centre (SIAC) also ordered that MSB Beauty, the joint venture firm, be liquidated.