Judgement of MVR 78 millions to BIG quashed, retrial ordered

The High Court today quashed the verdict requiring state media outlet Public Service Media (PSM) to pay MVR 78 million to Business Image Group (BIG) and ordered a retrial of the case, including an assessment of PSM role in the case.

In 2016, the Civil Court ruled against the Maldives National Broadcasting Corporation (MNBC), the state media established during President Mohamed Nasheed's administration, ordering it to pay MVR 78 million to BIG concerning an agreement signed in 2010. The verdict was delivered in the absence of MNBC.

From this, PSM settled MVR 30 million owed to BIG by the MNBC. Subsequently, PSM appealed the case to the High Court in 2021, after the expiration of the appeals deadline.

A majority of two judges on the High Court bench ruled that while the Civil Court had previously decided the case against MNBC, it should be reopened with PSM included, as its assets and liabilities have since been transferred to PSM. However, the High Court cannot determine the amount to be paid and other matters related to the agreement at this stage, according to the verdict.

Therefore, the previous judgment was annulled, and the case will be remanded for retrial.

The decision was made by Justices Huzaifa Mohamed and Hassan Shafeeu.

Justice Mohamed Niyaz, who dissented in the case, ruled that PSM should not be held responsible for the debt. He cited that when MBC was established under an Act after the dissolution of MNBC, BIG's agreement was not transferred to MBC. Therefore, even after the dissolution of MBC and the transfer to PSM, BIG's agreement will not transfer to PSM, he said.

Justice Niyaz stated that since MNBC was in the process of being dissolved, the responsibility of paying the debt was on MNBC. Therefore, PSM will not be required to pay the amount, and the money released so far by PSM will have to be recovered, Justice Niyaz said. He added that the funds were not released without this knowledge either.