Supreme Court order to compensate Dheebaja

The Supreme Court on Sunday ordered the Civil Court to establish a compensation amount the government needs to pay to Dheebaja Investment Pvt Ltd.

Top court’s order with judges, Judge Ali Rasheed Hussain and Judge Dr. Mohamed Ibrahim mutually agreeing on, stated that the agreement made by the government with Dheebaja was nullified illegally. Hence, the government needed to compensate the company for the damages.

The case has now been sent to the High Court, which will then forward it to the Civil court in order to finalize an amount that would be the total sum payable  in damages.

The third judge on the bench, Judge Mahaz Ali Zahir found the agreement was not terminated unlawfully, and that the government did not have to pay Dheebaja.

The contract between the State and Dheebaja for the establishment of ferry services in four northern provinces (N. Atoll, R. Atoll, B. Atoll, and Lh. Atoll) was signed on February 1, 2010, during former Maldivian president Mohamed Nasheed’s administration.

The contract was later terminated by the State citing a lack of progress in the project on May 30, 2013.

The State’s decision to terminate the contract was deemed unlawful by the Civil Court in 2014, and the court ordered MVR 348 million in compensation to Dheebaja.

Though overturned upon appeal by the High Court, the original ruling by the Civil Court was upheld upon appeal at the Supreme Court in April 2019.

Following a request by the State for a review of its earlier decision, the Supreme Court overturned its prior decision on April 2021 and sustained the High Court’s ruling. However, the court said Dheebaja had the right to appeal the High Court ruling, which the company exercised.

The Supreme Court concluded hearings in the appeal filed by Dheebaja in November 2021, after both sides reached an agreement.