Supreme Court revokes Yacht Tours bank accounts freeze
Yacht Tours initially filed the case in the Civil Court, which ruled that there was no need to determine whether MIRA had acted illegally.
The Supreme Court on Wednesday ruled that the Maldives Inland Revenue Authority (MIRA) acted unlawfully in freezing the accounts of Yacht Tours, a company owned by former Kaashidhoo MP Abdulla Jabir, over unpaid rent and penalties related to several resort properties.
MIRA had ordered the freezing of Yacht Tours’ accounts due to outstanding payments for the lease of Ha. Alidhoo, Kandalifinolhu, and Binaafushi resorts. However, Yacht Tours challenged the decision, arguing that the action was not in line with the terms of its contractual agreements with the State.
Yacht Tours initially filed the case in the Civil Court, which ruled that there was no need to determine whether MIRA had acted illegally. The High Court upheld the verdict, prompting Yacht Tours to escalate the matter to the Supreme Court.
In its ruling, the Supreme Court stated that contractual agreements between the parties must be honoured, and specific dispute resolution mechanisms outlined in the contracts must take precedence. The court outlined key points in its judgment:
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If Yacht Tours fails to pay rent, liquidated damages—as stipulated in the agreement—should be applied first.
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The agreements already contain solutions for handling non-payment, and an external rule cannot be enforced without following the contractual process.
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In contracts where the State is a party, it does not hold any special advantage beyond what is explicitly stated in the agreement.
Based on these principles, the Supreme Court unanimously ruled that MIRA’s freezing of Yacht Tours’ accounts was unlawful.
The ruling was delivered by a three-judge panel comprising:
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Dr. Azmiraldha Zahir (Chair)
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Dr. Mohamed Ibrahim
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Aisha Shujoon Mohamed
