Civil Court has ordered a halt to a notice seeking to terminate the agreement between the Housing Development Corporation (HDC) and Solaris Hospitality Private Limited over the plot housing Riveli Beach Club and Restaurant, as well as a directive to suspend all business operations over prolonged unpaid rent to HDC.
HDC sent a letter to Solaris last week, informing the company that they were voiding the commercial agreement made with them and that they had reclaimed the plot.
Sources state that the notice was sent after it was found out both parties made specific arrangements regarding rent payments.
Following the notice, HDC entered the Riveli premises on Monday to evict the operator. However, Solaris filed a case with the Civil Court challenging the eviction, seeking to overturn HDC's decision and obtain an interim order preventing HDC from vacating the premises.
The Civil Court's order on the case reads that Solaris will see unforeseen damages if the property is vacated and business is stopped before the case can be ruled upon.
Civil Court ruled that HDC must not take any action to halt operations at Riveli and, if any such action has already been taken, must restore the premises to their previous state.
Although operations were temporarily halted following HDC's entry into the premises, the court order requires the restaurant to resume services.
HDC said its agreement with Solaris was terminated due to long-overdue rental payments, adding that the decision was made in accordance with the agreement's procedures after the company had been issued multiple notices and given opportunities to settle the outstanding rent.
An official from HDC stated that Solaris, the company managing the restaurant at the Ruhgandu 1 area in Hulhumale', owes approximately MVR five million to the corporation to date. The official also said rent has not been paid regularly after the agreement was made and that even after letters were sent, only a portion of the rent was paid.
According to the official, none of the required CSR initiatives have been carried out either.
The issue of parties failing to regularly pay rent owed to HDC has escalated, with complaints raised over a prolonged period of time. This includes rent for certain businesses as well as flats.
