Indian company sues Maldives government over unpaid settlement

An Indian company has filed a civil lawsuit against the Housing and Construction Ministry for failing to honour a settlement agreement signed by the previous government over unpaid dues for a sewerage project.

The lawsuit was filed by LE Triveni JV, which was awarded a contract in 2017 to install water and sewerage systems on Thaa atoll Veymandoo and Lhaviyani atoll Naifaru during the administration of former President Abdulla Yameen.

The company had earlier initiated arbitration proceedings to recover funds allegedly owed under the project agreement. It also filed a case in the High Court of New Delhi.

To resolve the dispute outside arbitration, the Maldives government entered into a settlement agreement with the company on September 24, 2023. The agreement was signed after the first round of the presidential election and ahead of the second round of voting.

Under the settlement, LE Triveni JV agreed to withdraw its case from the Indian High Court within one month. In return, the government agreed to pay USD 648,508 in compensation within 15 days of the case being withdrawn.

According to the lawsuit, the company withdrew the case from the Indian court and informed the Maldives government on October 29, 2023. However, it alleges that no payment has been made despite repeated reminders sent through letters and emails.

LE Triveni JV has now asked the Civil Court to order the Housing and Construction Ministry to pay the compensation stipulated in the settlement agreement, along with interest and legal costs.

The case was filed in the Civil Court on December 17.