Court halts eviction of Riveli over unpaid MVR 7.8 million rent

The Civil Court has ordered the Housing Development Corporation (HDC) to suspend its efforts to evict Riveli Beach Club and Restaurant in Hulhumalé over unpaid rent, after the restaurant's operator challenged the termination of its lease.

The interim order was issued on Monday, following a case filed by Solaris Hospitality Private Limited, which operates the restaurant on Hulhumalé Lot 10877 in the Ruhgandu 1 area.

The dispute has also revealed that the restaurant has accumulated approximately MVR 7.8 million in unpaid rent and penalties.

HDC issued a notice on Monday prohibiting any business activities or services from being conducted on the premises.

Solaris Hospitality filed a case with the Civil Court on the same day, arguing that HDC's notice requiring the premises to be vacated violated the terms of the lease agreement.

According to the company's submission, HDC had relied on a literal interpretation of the agreement without adequately considering the circumstances that had prevented Solaris Hospitality from receiving the benefits of the lease.

The company also alleged that HDC had obstructed its ability to fulfil the agreement and that the eviction notice had been issued without following the procedures stipulated in the contract.

Solaris Hospitality argued that HDC's actions were inconsistent with the contractual requirements governing the termination of the lease.

In its interim order, the Civil Court stated that allowing the eviction process to proceed could affect the remedies sought by both parties in the substantive case.

The court therefore ordered HDC to suspend its efforts to reclaim the premises while the dispute is being considered.

Details emerging from the dispute show that rent for the property has remained unpaid for more than three years.

The monthly rent for the premises is approximately MVR 141,000, while accumulated unpaid rent stands at around MVR 5.4 million.

Including penalties imposed for non-payment, the total outstanding amount has reached approximately MVR 7.8 million.

The court proceedings follow HDC's decision to take action against the restaurant over the accumulated arrears.

The interim order temporarily prevents HDC from proceeding with the eviction but does not constitute a final ruling on the validity of the lease termination or the financial claims between the parties.

The substantive case remains before the Civil Court.