Court dismisses Kulhudhufushi Fenaka case by council

The Civil Court has ruled that a case filed by the HDh. Kulhudhuffushi City Council against Fenaka Corporation over the provision of electricity services in the city cannot proceed.

The council filed the case in June last year, arguing that Fenaka had obstructed the council from carrying out its responsibilities by refusing to sign an agreement to provide electricity services in Kulhudhuffushi.

According to the council, the Decentralisation Act places responsibility for providing electricity services on local councils. It argued that where such services are delivered by another party, an agreement must be signed between that party and the council.

The council said Fenaka had refused to enter into such an agreement, maintaining that it did not fall within the definition of a third party under the Decentralisation Act because the company was established by presidential decree to provide water, sewerage and electricity services across the Maldives.

In its ruling, the Civil Court found that Fenaka was not providing electricity services in Kulhudhuffushi on its own initiative but was carrying out responsibilities assigned by the state.

The court said the electricity service provided by Fenaka in Kulhudhuffushi was being delivered by the state through the company. It also noted that the city council had not filed the case against the state or the Attorney General’s Office, which represents the state in legal matters.

The court further stated that any legal challenge regarding the interpretation of the Decentralisation Act in relation to the provision of electricity services should be brought against the state.

The Attorney General’s Office declined to comment on the case.

Civil Court Judge Sinaan Ali ruled that the claims against Fenaka had not been established and dismissed the case, finding that there was no legal basis for the dispute against the company.