Supreme Court: Dheebaja agreement terminated wrongfully; allows compensation
Judge Ali Rasheed said that the agreement with Dheebaja could only be terminated after completing the conditions stated in the agreement.
By
Aman Haleem
Supreme Court has ruled on Sunday that the government's agreement with Dheebaja Investment Pvt Ltd to provide ferry services in the northern province during former President Mohamed Nasheed's administration had been terminated wrongfully, and that the company can seek damages at the Civil Court.
The government terminated the agreement with Dheebaja in 2013. The company filed a case at Civil Court seeking MVR 2.4 billion in damages. In 2016, the court gave a compensation of MVR 348 million.
Since then:
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High Court overturned the Civil Court ruling
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The Supreme Court initially voided the High Court judgement
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State requested a review of Supreme Court decision
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After the review, the Supreme Court ruled that the court's previous decision was wrong and that the High Court's decision remained in place
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Supreme Court also ruled that Dheebaja had the opportunity to appeal the High Court ruling
Dheebaja appealed the High Court's judgement at the Supreme Court. A verdict was issued on Sunday.
The case was concluded with the consensus of a three-judge bench of the Supreme Court when Justice Dr Mohamed Ibrahim concurred with Justice Ali Rasheed’s view the agreement was terminated by the transport ministry wrongfully.
The third judge on the bench, Mahaz Ali Zahir, said that the agreement had been terminated properly.
Dheebaja appealed the case to the Supreme Court on seven grounds:
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Three issues related to the appeal period
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Two issues related to the cancellation of the agreement
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Two issues related to compensation
Rasheed said that the matter of appeal had been addressed in the Supreme Court ruling, and that issues relating to the appeal period will be further reviewed before a ruling was made.
Mahaz and Ibrahim also backed Rasheed over the appeal period. Out of the three judges on the bench, ruling only differed over the terms the agreement had been terminated on.
Judge Ali Rasheed’s view
Rasheed said that the agreement with Dheebaja could only be terminated after meeting the conditions stated in the agreement.
The agreement states that the transport deal can be terminated without further notice if:
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If services are suspended for five consecutive days
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Otherwise, the agreement can only be terminated after a 90-day notice has been given.
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The transport ministry had terminated the agreement a day after issuing a letter stating that two islands did not have ferry services.
Rasheed decided that while the transport ministry had terminated the agreement under a specific article, ferry services were being provided to a large area within the scope of the agreement.
The Civil Court ruled that Dheebaja's damages, and the estimated future income loss calculated within 50 years of the agreement’s cancellation were also included in the compensation. Dheebaja's figures were based on an estimated income report.
Rasheed said that the case should be forwarded to the Civil Court for a re-decision on the compensation statement.
Ibrahim backed Rasheed's ruling.
Judge Mahaz Ali Zahir's verdict
Mahaz's verdict in the case was that the agreement was terminated properly. In this regard, he noted:
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In a letter sent before the letter in question regarding the termination of the agreement, the transport ministry had instructed the company to implement the agreement
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Dheebaja's failure to comply with the agreement for long periods of time was also noted in previous communications
