JAAH goes to court over HDC contract cancellation

JAAH Investment Private Limited has filed a case against Housing Development Corporation (HDC) at Civil Court, after HDC voided an agreement between both companies after JAAH allegedly failed to complete the apartments it was developing in Hulhumalé within the 45 day period given.

The case was filed at Civil Court's Hulhumalé division citing wrongful termination of the agreement just two days before HDC was set to assume power over the land.

JAAH also requested a temporary injunction against HDC taking the land back, which HDC argued against in court.

The Civil Court said it would issue a decision on the injunction by Sunday.

JAAH, which had been developing 'The Gardens' apartment complex in Hulhumalé since 2017, was given extensions multiple times to finish and hand over the property, with the last extension given on January 27 this year.

HDC said JAAH had failed to finish the building within the 45 days of "legal notice" given, due to which they informed the contractor to handover the property and that the agreement was voided.

In October 2023, HDC said JAAH had started finishing work of all the apartments below the 10th floor, which included plastering, putty work, tiling and installation of ceilings. All unfinished works on the building would be completed within six months, HDC said at the time.

During that time JAAH was also notified to complete the 83 apartment building within 30 days and to pay HDC for the land as well. However, JAAH has reportedly not paid the money, nor completed the apartments during the time frame given.