Connect with us

News

Tealive Outlets Risk Shutting Down for Good After Getting Warning From Court

Published

Tealive Outlets At Risk Of Closing Down After Appeal Court Grants Chatime'S Injunction Order - World Of Buzz 1
Source: Chatime

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.

Uh-oh, this doesn’t look good for Tealive! Bubble tea fans may not be able to drink the popular Tealive beverage anymore as the Court of Appeal has reportedly granted an injunction against Loob Holding Sdn Bhd on Wednesday (June 27).

According to FMT, Chatime owner Taiwan-based La Kaffa International Co Ltd had previously filed an injunction against the Malaysian bubble tea chain in February 2017 but the case was dismissed. The injunction was filed because La Kaffa wanted to stop Loob Holding from running a similar business as Chatime as they said that their tea business had been stolen from them.

However, La Kaffa brought the case to the Court of Appeal and in a written statement, Justice Hamid Sultan Abu Backer said that the Kuala Lumpur High Court had erred in dismissing the injunction against Loob Holding in May 2017.

Tealive's Operations May Be At Risk After Appeal Court Grants Chatime's Injunction Order - World Of Buzz 1

Source: fmt

The previous judge had ruled that the injunction be dismissed as it would affect the livelihood of 800 staff employed by Tealive and its 161 outlets. Hamid said this was not justifiable as Loob Holding had changed from the Chatime brand overnight to Tealive.

“Their conduct is not only in breach of legal obligations related to restraint of trade but also a breach of franchise law which does not encourage criminal or tortious conduct of business,” Hamid added.

“To put in simple terms, Loob having had the benefit of Chatime franchise business proceeded to set up a rivalry business which La Kaffa says is not permissible under the franchise terms as well as Franchise Act 1998. In consequence, they sought injunctions to restrain Loob with other mandatory prayers. The originating summons of La Kaffa, made pursuant to section 11 of Arbitration Act 2005 and/or inherent jurisdiction of the court sets out the problem as well as the restraining orders sought,” Hamid wrote.

Tealive Outlets At Risk Of Closing Down After Appeal Court Grants Chatime's Injunction Order - World Of Buzz

Source: the star

La Kaffa said that they started to doubt Loob Holding in January 2016 when they decreased orders for raw materials  despite growing rapidly in Malaysia. The Chatime drama came to a climax in December 2016 when La Kaffa decided to terminate the master franchise agreement. They also said that Loob Holding owed them US$713,273.72 (RM3.1 million) for raw materials which was later reduced to US$644,536.32 (RM2.6 million).

It is currently unclear whether Tealive is able to continue operations in Malaysia with the injunction granted. They told Vulcanpost that they will file an application for a stay and for leave to appeal to the Federal Court and their lawyers will be handling it. However, Loob Holding has already planned to expand to China with 500 Tealive stores in three years so it looks like they have other plans ahead!

Don’t worry though, there are many other bubble tea shops in Malaysia that can satisfy your cravings!

 

Also read: 7 Best Alternative Bubble Tea In KL Aside From Chatime You Can Try

7 Best Alternative Bubble Tea In Kl Aside From Chatime You Can Try - World Of Buzz 2

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.



Just In

Collage 2 1 Collage 2 1
News17 hours ago

M’sian Teen Goes Missing After Dad Refuses to Let Him Ride Motorcycle to School, Returns 5 Days Later

A teenage boy who reportedly left home after becoming upset that his father wouldn’t let him ride a motorcycle to...

Collage 1 2 Collage 1 2
News2 days ago

Singapore PM Lawrence Wong Urges Singaporeans to Learn Bahasa Melayu & Embrace Malay Culture

Singapore Prime Minister Lawrence Wong has encouraged Singaporeans to learn Bahasa Melayu and deepen their understanding of Malay culture, stating...

Dd Ft 87 Dd Ft 87
News2 days ago

“For Bumiputera economic development” – MARA Forms Task Force to Build Its Own Hospital

Plans to establish a Majlis Amanah Rakyat (MARA) Hospital are now underway, with a special task force formed to drive...

Collage 35 Collage 35
News2 days ago

62yo Penang Man Allegedly Attacks 86yo Neighbour with Iron Rod, Smiles & Waves at Cameras in Court

A 62-year-old man accused of brutally assaulting his 86-year-old neighbour with an iron rod was brought to court today for...

Collage 34 Collage 34
News2 days ago

“You have plantations here too” – Indonesian Politician Tells Malaysia & Singapore to Help Prevent Haze

The Indonesian government should call on Malaysia and Singapore to play a greater role in preventing forest and land fires...

Dd Ft 86 Dd Ft 86
News2 days ago

“I was dismissed within 24 hours” – Controversial M’sian Lecturer Dr Solehah to Challenge IIUM Dismissal in Court

The controversial Malaysian lecturer who recently went viral after claiming that the iron found in Kedah could be linked to...

Dd Ft 83 Dd Ft 83
News5 days ago

“No one is above the law” – JSPT Director Says Beacons & Sirens Don’t Mean Drivers Can Simply Run Red Lights

On 19 August, a family of three were killed along Jalan Sultan Ismail, Kuala Lumpur, after an Immigration Department (JIM)...

Dd Ft 81 Dd Ft 81
News6 days ago

77yo Man Allegedly Upset Over Neighbour’s Loud Radio Sets Fire to Their Home, Gets Arrested

A 77-year-old man was arrested by the Royal Malaysia Police (PDRM) after allegedly committing arson at his neighbour’s home in...

Announcement

Latest Videos



TRENDING TODAY