HC stays Hilton's $24m arbitral award payment order against Sun
If the implementation of the civil court's decision is not deferred at this stage, the interests of Sun Travels may be compromised.
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By
Fathmath Ahmed Shareef
High Court on Sunday issued an interim injunction, ordering the stay of an order against Sun Travels & Tours to pay USD 24 million (MVR 370.8 million) to Hilton International Management under a Singapore arbitration ruling that awarded damage claims to Hilton against Sun Travels for cancelling a contract for the management of Irufushi resort
Sun Travels, owned by prominent businessman and Meedhoo MP Ahmed Siyam Mohamed, terminated the Irufushi deal on April 30, 2013, on the grounds that Hilton had breached the agreement. When the case of cancellation of the agreement was referred to arbitration in Singapore:
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On August 17, 2015, the arbitrator issued a final award; Sun Travels was asked to pay USD 20.9 million in fines and additional costs
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When the division dealing with major cases related to property handed over the implementation of the award to the Civil Court, the court held that there was no jurisdiction
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When the award case was referred to the Civil Court's sentencing division for the second time, it was decided that the verdict could be executed only after the High Court decides on the award
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When the High Court was appealed with, the court set aside the Civil Court's ruling and declared that the "concerned court" as defined in the Arbitration Act was the Civil Court
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When the award case came up in the civil court for the third time, the court ordered all accounts of Sun Travels be frozen
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Challenging the civil court's orders, the High Court held that since the acceptance and implementation of arbitral awards are two stages, the two stages should be allowed separately.
More than seven years after this case was pending in various courts, the Civil Court on February 25 decided to accept Singapore's arbitration award and ordered the company to deduct the amount paid so far and pay the remaining amount, penalty and additional expenses within 14 days.
Sun Travels challenged the Civil Court's February order in the High Court. The company had moved the High Court seeking an interim stay on the implementation of the Civil Court order before taking a final decision on the appeal.
In its interim injunction on Sunday, the High Court said if the implementation of the Civil Court's decision is not deferred at this stage, the interests of Sun Travels may be compromised.
Siyam has decided to support President Ibrahim Mohamed Solih in the upcoming presidential elections.
At the time, there were rumours that Siyam had decided to support President Solih for his own gain, at a time when he he was under pressure to pay 24 million to a foreign company.
However, both Siyam's Maldives Development Alliance (MDA) and the government have denied the allegations.
