Maldives High Court on Wednesday, upheld Civil Court's no-flying order on Meedhoo MP Ahmed Siyam Mohamed.
Siyam received a no-flying order in February of this year in relation an outstanding USDc24 million payment from his Sun Travels company to Hilton International.
The case ended in Hilton's favor at the Singapore's Court of Arbitration.
Civil Court earlier ordered freezing Sun Travels' bank accounts as it had failed to settle the outstanding payment. This had failed to comply the company to settle the amount after which, the court ordered a no-flying order on Siyam.
Siyam's defense had appealed the order to High Court, which concluded with the presiding judges' bench for the case deciding to uphold lower court's decision.
Two out of the three-judge bench had ordered in favor of upholding the lower court order.
Justice Hathif Hilmy and Justice Fathimath Faruheeza, who ordered to uphold the decision, stressed courts held enforceability to issue no-flying orders on company directors in relation to outstanding debts. Although the Civil Procedure Act came to implementation recently, it will not have retrospective effect on court orders predating the act's implementation.
The only dissenting judge of the case, Justice Hussain Shaheed had opined from the perspective of separate legal entity.
According to him, the directors of the company were not liable to repay the outstanding debt. He noted that the company should be identified as a separate legal 'person' from its directors, and therefore must be held liable separately.