Civil court has passed a ruling over FAM last Thursday, mandating monthly USD payments in settlement of their debt to Beehive Hotels, which exceeds USD 11,000.
With a new decree by the Civil Court, Football Association of Maldives' monthly debt repayment amounts to be settled with Beehive hotels alone has exceeded MVR 11,000.
The verdict by the Civil Court last Thursday stated that the sum total of the unsettled USD payments for the services extended by Beehive Hotels must be fully reimbursed within one year. The total funds owed to the hotel by the association stands at USD 102,186.87.
With this court order, FAM is now mandated to pay over USD 8,500 to the hotel monthly. This is the second ruling passed over the Association directing repayment of pending payments to the Beehive Hotel.
Civil Court had passed a verdict over FAM ordering settlement of payments for the hotel in November last year as well. This mandate was passed in relation to the unsettled debt of MVR 500,000 borrowed from the company under an agreement to reimburse the hotel in dollars.
The principal amount owed by FAM to the company in this court case converts to USD 32,426 while the court had ordered repayment of this debt in monthly installations. Distributed over the months, FAM is required to routinely disburse an amount of USD 2,700 each month.
At the trial of the case held on Thursday, Beehive hotels had appealed the court to pass a decree over FAM mandating simultaneous repayment of the debt with an additional 2 percent interest for each day the payments remained unsettled as compensation for the damages incurred by business due to FAM's failure in settling the payment during the given window.
However, FAM had objected to this, maintaining that the 2 percent increased each day is a relatively large amount. The association had argued that this daily increase of two percent was not included in the original lawsuit filed against them by the hotel and further asserted that FAM has never agreed to such a condition.
Concurring to the original amount of the debt, the Association had requested payments to be distributed into monthly installations. The Court decreed FAM to issue monthly payments than is not below the determined amount to the Civil Court before the 10th of each month within the span of one year.
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