Kulhudhuffushi council appeals ruling in Fenaka electricity agreement case

Kulhudhuffushi City Council has appealed a Civil Court ruling that dismissed its case against Fenaka Corporation over the absence of an agreement between the council and the state-owned utility company for the provision of electricity services in the city.

The council filed its appeal at the High Court last Sunday, according to court registry records. The High Court has yet to decide whether to accept the case.

Kulhudhuffushi City Council filed the original case against Fenaka at the Civil Court in June, arguing that the company was providing electricity services in the city without entering into an agreement with the council as required under the Decentralisation Act.

The council argued that the provision of electricity to residents falls within the responsibilities assigned to local councils under the Act.

It further argued that when a third party carries out a service assigned to a council under the law, an agreement must be signed between the council and the party providing the service.

The Civil Court, however, ruled against the council.

In its judgment, the court found that Fenaka was not providing electricity services in Kulhudhuffushi on its own initiative. Instead, the company was carrying out a service assigned to it by the state.

The court therefore determined that electricity supplied through Fenaka in Kulhudhuffushi constitutes a state service delivered through the company.

The judgment noted that Kulhudhuffushi City Council had filed the case against Fenaka rather than the State of Maldives or the Attorney General's Office, which represents the state in legal proceedings.

According to the Civil Court, if the council wished to seek a determination on the legal issues arising under the Decentralisation Act, the claim should have been brought against the state.

The judgment also noted that the council did not agree to seek the position of the Attorney General's Office in the proceedings.

Civil Court Judge Sinaan Ali concluded that the dispute could not be determined through a case filed solely against Fenaka.

On that basis, the court ruled that the claims submitted by Kulhudhuffushi City Council against the utility company had not been established.

The council has now challenged that judgment before the High Court. A decision on whether the appeal will be accepted remains pending.