Court withdraws Maldivian's MDP case after debt settlement pact

Civil Court on Saturday withdrew a case filed against the Maldivian Democratic Party (MDP) by Island Aviation, which operates the national airline, Maldivian, following an agreement between the two parties on how to settle the MDP’s outstanding debt of MVR 5.6 million.

Island Aviation, which operates under the brand name Maldivian, initiated legal action last year to recover the debt owed by the MDP. The debt was primarily accumulated for air travel services provided to the MDP's presidential candidate and then-President, Ibrahim Mohamed Solih, between September and October of the previous year.

As per the records, the trips were made during the MDP's campaign period, and the airline sought payment for the services. When the MDP failed to settle the debt, Maldivian sued the party in the Civil Court in an effort to recover the funds.

However, during a court session held on Saturday, it was revealed that the two parties had reached an out-of-court settlement agreement.

As part of the settlement, the MDP has already paid MVR 1 million as the first instalment toward the debt. This initial payment paved the way for Maldivian to file a motion in court requesting the withdrawal of the lawsuit.

The Civil Court has now dismissed the case, with the option for Island Aviation to re-file the lawsuit if necessary. The judgment disclosed that the charge sheet was withdrawn specifically to accommodate the settlement agreement between the two parties.