MPL survives MVR 138.9 million fine scare over tugboat

Maldives Ports Limited (MPL) headquarters. (File Photo)

High Court has overturned a Civil Court ruling which required Maldives Ports Limited (MPL) to pay MVR 138.9 million in fines for failure to pay for a tugboat purchased from Center Enterprises Private Limited.

MPL agreed to pay MVR 13.77 million for the tugboat invoice, agreeing also to pay 2 percent of the total as a fine for each day that passes if the payment isn’t made within the agreed upon period. The fines amounted to MVR 138.9 million.

Civil Court ordered MPL to pay MVR 138.9 million in fines to Center Enterprises in 2016.

The High Court overturned the ruling on Wednesday, citing a previous High Court ruling establishing that the invoices in question from Center Enterprises does not need to be paid.

The High Court bench which oversaw the case unanimously agreed the fine therefore does not need to be paid.

The bench was composed of Judge Fathimath Faruheeza, Judge Abdulla Hameed and Judge Ali Sameer.