Mara wins appeal to regain RM6.6mil from head of aerospace association

In a recent appeal, lawyer representatives for Mara, an organization, successfully overturned a prior High Court ruling in favor of businessman Naguib Nor. The original decision granted him the right to retain RM6.6 million. The Court of Appeal, comprised of Justices Wong Kian Kheong, Alwi Abdul Wahab, and Ahmad Kamal Shahid, unanimously agreed with Mara's appeal.

Additionally, Mara was ordered to cover the legal costs of RM50,000. The unanimous ruling came as the court reviewed a 2014 profit guarantee agreement between Mara and Strand Aerospace Malaysia Sdn Bhd, the aerospace company founded by Naguib Nor. According to the agreement, the businessman guaranteed Mara a profit of at least RM21 million in the financial year ending May 31, 2014, and RM21.3 million in the subsequent year.

However, Strand Aerospace only managed to generate profits of RM1.82 million and RM1.91 million in those respective years. The appellate court determined Naguib Nor to be in breach of his contractual obligation, as his actions negatively impacted the company's ability to generate profits and pay dividends. The panel dismissed Naguib's claim that Mara contributed to the financial difficulties, stating that such issues only became relevant after the business failed to meet its profit targets in 2014 and 2015.