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Hilton can obtain details about Sun's assets: Singapore Court

Shahudha Mohamed
29 July 2020, MVT 18:14
Sun Siyam Iru Fushi resort, which was previously operated by Hilton International. PHOTO: SUN SIYAM IRU FUSHI
Shahudha Mohamed
29 July 2020, MVT 18:14

The Court of Appeal of Singapore concluded in early July that renowned hotel chain Hilton International has the right to obtain details of local firm Sun Travel and Tours, regarding the verdict of Singapore International Arbitration Centre.

According to the decision made by the court of appeal, upholding the Singapore High Court's verdict following the order issued by the Singapore International Arbitration Centre, Hilton International has the authority to demand information about the Sun Travel and Tours' assets, irrespective of whether the court order can be implemented in Maldives.

Sun Travels had awarded the management of Iru Fushi, which is owned by Maldives Development Alliance’s leader and parliamentary representative of Meedhoo, Shaviyani Atoll, MP Ahmed Siyam Mohamed, to the globally renowned Hilton International in 2009. The local firm later terminated the agreement in 2013, sixteen years before the contract matured.

Hilton then filed a lawsuit against Sun Travels at the Singapore International Arbitration Centre, which ruled in favour of the former and ordered Sun Travels to pay USD 26 million to Hilton as damages for contract termination.

Singapore's Court of Appeal, on February 2019, upheld the verdict of Singapore International Arbitration Centre ordering the local firm to pay the USD 26 million.

The arbitration centre's decision was then successfully appealed at Maldives' Civil Court, which ordered Hilton International to pay USD 16.6 million to Sun Travels as compensation for violating the terms of their agreement to manage Iru Fushi.

The Maldives' High Court on July 7, overturned the Civil Court's ruling against Hilton International to pay USD 16.6 million in damages to Sun Travel and Tours, over violating the terms of their agreement in the former's management of Sun Siyam Iru Fushi resort.

During the appeal of the court's decision, the High Court, in reference to the contract, moved to uphold the arbitration centre's findings that Sun Travel failed to prove that the agreement was null, based on claims that Hilton misrepresented facts to influence the contract signing.

According to the initial contract, disputes that arise between the two companies must be resolved through the Singapore International Arbitration Centre.

However, the case filed over the implementation of the order issued by Singapore's Arbitration Centre for Sun Travels and Tours to compensate Hilton International has yet to reach a conclusion.

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