Court orders MDP to pay MVR 3.6 million to Maldivian Airlines within a month

Civil Court has cancelled a settlement agreement between the Maldivian Democratic Party (MDP) and Island Aviation and ordered the party to pay MVR 3.6 million within 30 days.

The agreement, signed last year, required MDP to pay Island Aviation; the operator of Maldivian Airlines a total of MVR 5.6 million in instalments for flights during the 2023 presidential election. Under the deal, MDP was to pay MVR 5.6 million in two equal instalments over a year.

However, Island Aviation filed a lawsuit seeking full payment after the party failed to honour the agreed timeline.

Civil Court in its ruling stated that MDP had paid MVR 2 million to date, but the remaining MVR 3.6 million remained unpaid. The delay, the party said, was due to a hold-up in receiving funds from the state.

MDP requested more time, but Island Aviation refused.

As a result, the court cancelled the previous settlement agreement and ordered MDP to pay the outstanding amount through the court within 30 days.

The case was initially filed by Island Aviation due to non-payment.