Court orders MDP to pay MVR 3.6 million to Maldivian

The Civil Court on Tuesday ordered the Maldivian Democratic Party (MDP) to pay MVR 3.6 million to Island Aviation Services Limited within 30 days, following the termination of a settlement agreement between the two parties.

Island Aviation, the operator of the national airline Maldivian, had filed a lawsuit after the MDP failed to adhere to the payment schedule outlined in a previously signed settlement agreement.

The MDP had an outstanding debt of MVR 5.6 million owed to Island Aviation for chartered flights conducted during the 2023 presidential election campaign, particularly in September and October by then-President and MDP presidential candidate Ibrahim Mohamed Solih. Under the settlement agreement, the MDP agreed to repay the amount in instalments. The party had paid MVR 2 million across two tranches before defaulting on a scheduled payment.

According to court documents, the agreement stipulated a payment of MVR 1 million every six months. The most recent payment was due on the 1st of this month. Island Aviation filed the civil suit after the MDP failed to meet this deadline.

Judge Sinan Ali, presiding over the case, stated that the settlement agreement included a provision for immediate termination if payments were not made by the specified date. As the payment deadline for the third instalment had passed without fulfilment, and since Island Aviation did not agree to renegotiate the terms, the judge ruled that the case must be settled with a lump sum payment.

The MDP argued that delays in receiving state funding allocated to political parties contributed to the missed payment. However, the court maintained that the terms of the agreement were binding.

The MDP now has 30 days to pay the remaining MVR 3.6 million.