Vida Beauty Sdn Bhd

On the court record

A corporate customer litigating Islamic-financing default enforcement, including setting aside a default judgment and orders for sale under the National Land Code.

Vida Beauty Sdn Bhd appears in the corpus as a party in Islamic-financing enforcement proceedings brought by a financier, concerning default judgments and orders for sale of charged land.

One matter, framed in Bahasa Malaysia, concerned an application to set aside a penghakiman ingkar kehadiran (judgment in default of appearance) and the delay in filing that application. The court examined whether the delay was satisfactorily explained, whether the judgment was regularly obtained, and whether service by prepaid registered post under the contract amounted to deemed service, engaging Order 10 rule 3, Order 42 rule 13 and Order 92 rule 4 of the Rules of Court 2012. On the merits it addressed a Commodity Murabahah financing, an acceleration clause and the right to claim the full Bank Sale Price on default, whether the claim was premature, and the operation of ibra (rebate of unearned profit), noting the argument that ibra applies on early settlement rather than in a default situation, together with a creditor's right to pursue a guarantor without first realising security.

Two connected matters concerned orders for sale under sections 254 and 256 of the Kanun Tanah Negara 1965 (the National Land Code) in respect of a registered charge securing a Commodity Murabahah Term Financing-i. The court examined default in payment, service of a Form 16D notice by registered post and the presumption of valid service, the question of cause to the contrary, a dispute as to quantum concerning unearned profit and the Sale Price, and the effect of an application to set aside a default judgment in a separate action on the order-for-sale proceedings.

These proceedings show a corporate customer litigating the mechanics of Islamic-financing default enforcement. The narrative reports the statutory provisions and the issues the courts identified, and states outcomes only as recorded. The pairing of a default-judgment challenge with parallel order-for-sale proceedings shows how an Islamic-financing default can be contested simultaneously on the personal judgment and on the charged security.