The High Court Sunday issued an order staying the payment of money owed by Meedhoo MP and Maldives Development Alliance (MDA)'s President Ahmed Siyam's company Sun Travels and Tours to Hilton International.
The dispute between Sun and Hilton was caused when Sun canceled the agreement signed with Hilton to hand over the operation of one of their resorts, N. Irufushi, in 2013. Following the termination of the contract, Hilton filed a case with Singapore Arbitration in accordance with the agreement between the two parties. The arbitration ordered Sun to pay US$24 million to Hilton.
Hilton filed a lawsuit in the Maldives' Civil Court when Sun failed to pay the arbitration award. The court then ordered Sun to pay the amount within 14 days. The court also ordered Sun to pay the penalty for failing to pay the due amount.
In the Civil Court, Sun argued that the international arbitration decision could not be accepted by the Civil Court. The Sun Company also told the court that the agreement with Hilton was made by Hilton in deceit, in violation of Maldives' general policies. The Civil Court, however, ruled that Sun had not shown any legal justification for its claims. The judgment also said that the Supreme Court has ruled that the Maldivian courts can recognize the arbitration awards and enforce such awards.
The High Court today issued a stay order on the Civil Court decision, signed unanimously by the bench of three justices. The bench of justices comprised Justice Mohamed Saleem, Justice Hussain Shaheed, and Justice Hassan Shafeeu.
The High Court order said Sun's interests could be prejudiced if the Civil Court does not issue an order to stay the enforcement of the previous judgment. The High Court ordered the implementation of the Civil Court's decision to be postponed until the High Court decides on the lower court's judgment.
After canceling the agreement with Hilton, Sun rebranded Irufushi as a "Sun Siyam" resort and is now operating 221 beds on the premise.
