Meridiam credit limiting case appealed at Supreme Court

State Trading Organization (STO)’s credit limiting on fuel for MP Riyaz Rasheed’s Meridiam Services has been appealed at the Supreme Court.

The Supreme Court has accepted the case and scheduled a hearing for today.

The first agreement between Meridiam and STO for fuel supplying was made with a credit limit of MVR 20 million to be repaid in 40 days.

But STO changed the agreement in March 2011 reducing the limit to MVR 10 million with repayment duration reduced to 30 days.

Meridiam took to court and both the Civil Court and the High Court ruled in favor of STO and that they had not acted against the law in limiting the credit amount of fuel released to Meridiam Services, and decreasing the duration within which the company needs to pay back the owed money.