The state, on Wednesday, asserted that the earlier verdict, to compensate Dheebaja Investment Pvt Ltd with MVR 348 million, was based on unknown calculations and information.
The Civil Court initially ordered the government to pay a sum of MVR 348 million as compensation to Dheebaja in 2014, during President Mohamed Nasheed's tenure. The company then filed a lawsuit, after the administration of President Dr Mohamed Waheed terminated a 2011 contract regarding the provision of ferry services in the Northern Province.
The Civil Court's ruling was overturned by the High Court in 2018. However, the apex court annulled the High Court's decision in April 2019 on the grounds that the appeal was accepted two months after the deadline passed.
Earlier in 2020, the Attorney General's Office requested the Supreme Court to review the Dheebaja case upon the request of incumbent President Ibrahim Mohamed Solih.
Speaking at the first hearing scheduled at the Supreme Court to review the verdict, state representatives asserted that the Civil Court's initial decision to mandate compensation to Dheebaja was finalised based on a document presented by the company itself. Further, it was noted that the document in question did not adhere to auditing regulations which are currently in place.
Regarding the Civil Court's initial decision, the state also highlighted that the verdict violated the provisions regarding compensation under Maldives’ Law of Contract.
Revealing that the state had failed to lodge the appeal within the allotted time period due to delays in receiving reports from the Civil Court, state representatives defended the High Court's acceptance of the case in 2018. It was highlighted that the Judicature Act permitted the acceptance of appeals after the expiry of the allocated period, provided that there was a justifiable reason for delays.
Therefore, the state stressed that the apex court's decision to maintain the Civil Court's 2014 ruling and back the payout of MVR 348 million in compensation to Dheebaja, was finalised in contravention to regulations.
Member of Dheebaja's legal team Mohamed Haleem stated that the government only appealed the case when Dheebaja moved to seek the implementation of the verdict which demanded a compensatory payment of MVR 348 million.
He went on to assert that it was not legally permissible to review verdicts after the deadline for submitting appeals had expired and that such cases could only be reopened in circumstances that raise considerable suspicions of injustice or involve systematic procedural issues.
Highlighting a shift in the state's rhetoric at court, Lawyer Mohamed Faisal added that the government had previously agreed in court that it failed to submit the appeal to the High Court within the allotted time period due to the negligence of the lawyer assigned to the case and assented that this did not constitute a suitable reason to review the case.
He also expressed the necessity of the state providing an adequate reason as to why the Supreme Court was currently reviewing a case for which a verdict was already announced.
Furthermore, he added that the state entering discussions with Dheebaja to reach an out-of-court settlement was proof that the Supreme Court's verdict was accepted by the government.
In July, Auditor General Hassan Ziyath refuted an out-of-court settlement with Dheebaja, claiming that the contract was terminated after the company breached the agreement, deeming the itas negligent in carrying out their tasks.
Wednesday's hearing was overseen by a judge bench consisting of Judge Aisha Shujune Mohamed, Judge Azmiralda Zahir and Judge Mohamed Ibrahim.
The Supreme Court announced that the second hearing regarding the Dheebaja case would be scheduled shortly.
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