Supreme Court of the Maldives has ruled that Dheebaja Investment Private Limited is owed compensation as the previous government had terminated the agreement unlawfully.
The government of President Mohamed Nasheed contracted Dheebaja to establish a ferry service in the northern province in 2010 and the agreement was terminated during President Dr. Mohamed Waheed’s administration in 2013. Dheebaja filed a lawsuit and won the case against the state, with the Civil Court ordering a compensation amount of USD23 million.
Two of the three Supreme Court justices who presided over the case ruled that the agreement was terminated in 2013 unlawfully and that the amount owed in compensation also needs to be re-evaluated. The presiding judges were Justices Ali Rasheed Hussain, Mahaz Ali Zahir, and Dr. Mohamed Ibrahim. It is the third Supreme Court ruling on the case.
In his judicial opinion, Justice Rasheed said the government had terminated the agreement without prior notice over Dheebaja’s failure to provide ferry services. He, however, noted the government documents show the company was providing the services at the time the agreement was terminated. He also ordered the Civil Court to re-evaluate the amount owed in compensation.
Justice Ibrahim’s opinion states he supports Justice Rasheed’s instructions to the government except the one regarding the agreement to lease 47 plots of land to Dheebaja, while Justice Zahir said it was not determined that the government had violated the agreement and, therefore, Dheebaja is not owed any compensation.
In 2018, the High Court overturned the Civil Court’s ruling to provide USD23 million in compensation, and in 2019 the Supreme Court overturned the High Court’s ruling, citing a procedural violation. The court hearings concluded in late 2021.