SC quashes order staying water theme park agreement termination
HDC had said at the time that the water theme park would be completed by 2018 or 2019, but now the site is in a dilapidated state.
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By
Fathmath Ahmed Shareef
Supreme Court on Thursday overturned an interim order passed by the High Court last month to stay HDC's decision to cancel the agreement with private developer Waterfront for the development of a water theme park in Hulhumale.
HDC and Waterfront signed an agreement on July 13, 2017 to develop a water theme park and a tourist hotel in Hulhumale. On August 22, 2022, HDC cancelled the agreement and sent a letter informing Waterfront about its violations.
Case Summary:
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At the time of sending this letter, a case regarding the agreement between the two parties was pending with the Civil Court's Hulhumale division
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On August 25, Waterfront had filed an application seeking a stay order on the implementation of the letter sent by HDC cancelling the agreement
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Waterfront had moved the Civil Court seeking an interim injunction, but the court did not pass the order
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Waterfront challenged the Civil Court's decision not to pass an interim order in the High Court
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In the appeal, the company has sought quashing of the Civil Court decision not to issue an interim order and a direction to HDC and all the concerned authorities not to comply with the letter sent by HDC informing them that the agreement between the two parties has been cancelled, till the disposal of the Civil Court case
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The company also requested the High Court to pass an interim order staying the implementation of HDC’s letter earlier
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Last month, the High Court had issued an order staying the implementation of the letter sent by HDC to Waterfront cancelling the agreement, as was requested by Waterfront
HDC appealed the High Court order at the Supreme Court.
The Supreme Court in its judgment said:
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The fairest course of action would be for the court to hear the appeal expeditiously and decide on the appeal
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Otherwise, the court proceedings will start and the provision of temporary remedy at the time of the case will be hampered
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The remedy sought by Waterfront in its appeal to the High Court, as well as the interim order seeking separate issuance of the appeal, had sought only one remedy
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Whatever the High Court may have decided on the interim order, it is possible that in such circumstances the appeal before the High Court has been decided
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Without deciding on the appeal, the High Court has not maintained the procedure while issuing the interim order in the present case
The water theme park is being developed on a plot adjacent to Hulhumale's former main bus terminal. HDC had said at the time that it would be completed by 2018 or 2019, but now the site is in a dilapidated state.
