Fenaka ordered to pay MVR 27M to Apollo Holding within three months

Civil Court has ordered Fenaka Corporation to pay MVR 27 million to Apollo Holdings Private Limited within three months.

Apollo Holdings filed a case with Civil Court seeking to recover MVR 27,119,072.49 (twenty-seven million one hundred nineteen thousand seventy-two Maldivian Rufiyaa and forty-nine Laari) from Fenaka which Apollo said was owed by Fenaka in payments for goods disbursed to the company on credit basis. According to Apollo, the debt was incurred starting from 2020.

Civil Court, in its ruling in the case, said Fenaka had failed to submit documents indicating they had received the claim form within the stipulated timeframe.

In this regard, the Court detailed that Fenaka sent a letter on September 1st requesting additional time to respond to the claim. It was noted that the company submitted its response on September 16th. However, the Court said it did not accept the response form as it had yet to receive the document from Fenaka confirming the recipient of the claim form.

Thus, Civil Court ruled that Fenaka owed Apollo Holdings the MVR 27.1 million as unpaid dues for goods disbursed to the company on a credit basis. In this trajectory, Fenaka was ordered to settle the payment within three months from Sunday, in absentia.

Although the Court ruled in favor of Apollo Holdings in the case, the Court said there were no grounds to award the damages claimed by the company over the delays in the payment of debt. The Court also said there no grounds to award MVR 25,000 sought in legal fees.

The current administration described state-owned Fenaka as a “nest of corruption” after assuming office. The company’s new management has said that Fenaka was MVR 1.7 billion in debt when they took over. Seven months in, the company announced it had cleared MVR 300 million in outstanding payments, including to 278 different vendors.

The company also posted a profit of MVR 7 million in Q2, after consistently running at a loss.