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No discrepancy in sublease termination of Rihiveli Resort, court rules

Nafaahath Ibrahim
15 April 2018, MVT 13:29
Rihiveli Beach Resort. PHOTO/BOOKING.COM
Nafaahath Ibrahim
15 April 2018, MVT 13:29

The Civil Court passed a verdict stating that the sublease for Rihiveli Resort was terminated and the resort was rightfully taken from the managing company.

K.Mahaanaelhihuraa, where three start resort Rehivehi is run was leased to Mahal Tours Maldives by the state. In 2014, Mahal Tours subleased the resort to Castaway Maldives company. However, in January 2018, Mahal Tours had cancelled the sublease agreements and sent an evacuation notice to Castaway Maldives.

Castaway Maldives had appealed to the Civil Court on Wednesday, but the company was told that the sublease was not terminated illegally. According to the Civil Court's ruling, Mahal Tours have claimed that Castaway was not paying due amounts of head lease rents under the sublease agreement. In the sublease agreement, it is stated that if due amounts are not paid, the agreement will be terminated.

The court ruling also noted that, although Castaway claimed there were discussions of a third partying paying the head lease rent amounts, there was no evidence that it was paid. In addition to this, the ruling highlighted that any changes to the sublease agreement must be brought in written form, which was also not done.

Castaway Maldives had appealed to the Court to grant a them the amounts that the company had spent and to compensate them for any damages that the company might suffer due to the termination of the sublease agreement. However, Civil Court stated that this can only be done if the agreement was terminated illegally.

The Civil Court had issued a temporary order to delay taking action on the terminated agreements until the court reached a final decision on the case.

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