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Civil Court's order to freeze Sun Travels' accounts appealed at High Court

Shahudha Mohamed
30 September 2020, MVT 21:33
Sun Travels and Tours lodged an appeal at the High Court, over Civil Court's order to freeze the company's accounts regarding Hilton vs Sun Irufushi case. PHOTO: MIHAARU FILES
Shahudha Mohamed
30 September 2020, MVT 21:33

Sun Travels and Tours, on Wednesday, lodged an appeal at the High Court regarding the Civil Court's order to freeze the company's accounts.

The order released on September 6, instructed to freeze the accounts of Sun Travels, owned by Maldives Development Alliance’s (MDA) leader and parliamentary representative of Meedhoo, Shaviyani Atoll, MP Ahmed Siyam Mohamed, over the implementation of a verdict delivered on a case filed by renowned hotel chain Hilton International.

According to the court, the decision came after the High Court overturned a Civil Court ruling against renowned hotel chain Hilton International to pay USD 16.6 million in damages to Sun Travels for violating an agreement between both parties to manage the Sun Siyam Iru Fushi Resort in 2013, sixteen years before the contract matured.

Hilton International had then filed the matter for arbitration at the Singapore International Arbitration Centre.

Hilton having filed a lawsuit against Sun Travels at the arbitration centre, ruled in favour of the former, and ordered Sun Travels to pay USD 24 million to Hilton as damages for contract termination.

The High Court, in reference to the contract, moved to uphold the arbitration centre's findings that Sun Travels failed to prove the agreement as null, based on claims that Hilton misrepresented facts to influence the contract signing.

Hilton has since filed the matter at Maldivian courts to impose the arbitration ruling after Sun Travels failed to pay damages.

Sun Travels had awarded the management of Sun Siyam Iru Fushi to Hilton International in 2009.

Although Sun Travels lodged for an appeal of the Civil Court's verdict, it is currently unclear whether the High Court accepted the case.

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