Court nullifies stay on Villa Group's airport agreement termination
The Tourism Ministry decided to terminated the agreement on the grounds that the airport did not match-up to aviation standards.
Villa's Qasim Ibrahim at the first parliamentary session for 2017
The High Court has nullified the Civil Court’s stay order on prematurely terminating the lease to Villa Group to operate the domestic airport in Kaadedhoo island of Gaafu Dhaalu atoll.
The Court nullified the order on Thursday, on the grounds that it was not in accordance to best practices. The High Court’s decision was based on the reasoning that while the order was put in place to deter losses to Villa Group, it had not considered the losses the State would sustain.
Villa Group had appealed the Tourism Ministry’s decision to terminate the agreement, on the grounds that the company’s operation of the airport did not meet some aviation regulations with the Civil Court, which ruled that the termination be suspended until a trial is held and a decision on the matter is made.
The Tourism Ministry had made the agreement with Villa in 2013, and the company was informed of the termination in January 2015. That which was supposed to be a 50-year contract was cancelled in 2014 as well, but reinstated the same year.
