KUALA LUMPUR: All outlets of Tealive Asia will remain open until further instruction from the courts, the company said on its social media. Tealive operator Loob Holdings Sdn Bhd has filed for an appeal and the matter will be heard in the Federal Court on July 16.
Loob Holdings lost in its application to stay an injunction order granted by the Court of Appeal to Chatime Taiwanese owner La Kaffa International Co Ltd last week.
In a dissenting judgement, Court of Appeal judge Datuk Rhodzariah Bujang said there were special circumstances in the case that should have been taken into account. She was part of the three-person bench at the Court of Appeal last Thursday.
"It is the undisputed fact that if the injunction is not allowed pending the leave application, all 179 outlets of Tealive Malaysia will have to cease operations. All 1171 employees working in the outlets would be out of jobs," she said in her judgement.
This scenario is not just a mere "fear of losing business, customers, suppliers and goodwill" but a real ramification from disallowing the stay, she added.
"The hardship and inconvenience will not be just suffered by the respondent being the wrongdoer as found by the court and should not be a valid consideration for granting a stay, but to innocent third parties, its employees and families which numbered more than a thousand."
In the judgement on Thursday, Datuk Hamid Sultan Abu Backer, who presided over the panel, ruled that there were no special circumstances to stop the injunction order, as Loob Holding had not filed to seek leave to the Federal Court.
Court of Appeal granted La Kaffa an injunction to stop Loob Holding, which is its former franchise holder, from carrying out a similar business as Chatime.
Hamid said the High Court had erred in dismissing the injunction against Loob Holding on the grounds that the livelihood of its outlets and employees would be affected if they were barred from running the business.
On Feb 17 last year, La Kaffa had sought an injunction to stop Loob Holding from selling products which were similar to theirs.
Company director Chen Zhao, through his affidavit, claimed Loob Holding had breached the terms of the main franchise agreement, causing them to terminate the agreement.