Fenaka loses another lawsuit; ordered to pay MVR 9.9M to supplier

The Civil Court on Thursday ordered Fenaka Corporation to pay MVR 9.9 million within a month to one of the company’s vendors – marking the second such lawsuit the state utility company has lost within a week.

IS Enterprises filed the lawsuit against Fenaka claiming failure to make MVR 10 million in payments for 27 invoices for the supply of equipment to the company.

At court, Fenaka initially rejected IS Enterprises’ claims, accusing the company of misrepresentation facts.

The utility service later agreed it needed to pay MVR 8 million out of the MVR 10 million claimed by IS Enterprises, but argued it did not need to pay the remaining MVR 2 million due to late delivery of equipment.

It also asked for a flexible repayment schedule of eight months.

But the court decided on Thursday that Fenaka failed to provide evidence to back its arguments, and ordered the company to pay MVR 9.9 million to the IS Enterprises within one month.

It marks the latest in a string of lawsuits filed against Fenaka by its suppliers, as the company grapples with the staggering debt it has accumulated over the years, and allegations of corruption and mismanagement.

On October 28, the state utility lost an MVR 6.8 million lawsuit filed against another one of its suppliers, Veshi Link Investment.