The Civil Court, on September 6, released an order to freeze the accounts of Sun Travel and Tours, owned by Maldives Development Alliance’s leader and parliamentary representative of Meedhoo, Shaviyani Atoll, MP Ahmed Siyam Mohamed.
According to the court, the decision came after the High Court overturned a Civil Court ruling against renowned hotel chain Hilton International to pay USD 16.6 million in damages to Sun Travel for violating an agreement between both parties to manage the Sun Siyam Iru Fushi Resort in 2013, sixteen years before the contract matured.
Hilton International had then filed the matter for arbitration at the Singapore International Arbitration Centre.
Hilton having filed a lawsuit against Sun Travels at the arbitration centre, ruled in favour of the former and ordered Sun Travels to pay USD 24 million to Hilton as damages for contract termination.
The High Court, in reference to the contract, moved to uphold the arbitration centre's findings that Sun Travel failed to prove the agreement as null, based on claims that Hilton misrepresented facts to influence the contract signing.
Hilton has since filed the matter at Maldivian courts to impose the arbitration ruling after Sun Travel failed to pay damages.
Sun Travels had awarded the management of Sun Siyam Iru Fushi to Hilton International in 2009.
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