A ruling by Civil Court in the Maldives on 6th September to freeze Sun Travel and Tours which is owned by Maldives Development Alliance’s leader and parliamentary representative of Meedhoo, Shaviyani Atoll, MP Ahmed Siyam Mohamed has been issued.
According to the court order the decision comes after a High Court overturned a Civil Court ruling against renowned hotel chain Hilton International was order to pay USD 16.6 million in damages to the Sun Travel for violating the agreement between both companies on Sun Siyam Irufushi Resort in 2013 which the company took back the resort before the contract matured.
Hilton International earlier filed a case against the following in Singapore’s International Arbitration Centre. Hilton has filed the lawsuit against the Sun Travels and ruled in favour of the former management. The case had order Sun travel to pay USD 24 million to Hilton in damages for contract termination.
However, the order was not upheld by the local authorities and Sun Travel had failed to provide the agreement as null. Based on the claims Hilton misrepresented facts to influence the contract signing and the local authorities had not followed through the order set by the Singapore’s International Arbitration Centre.
Since then Hilton has already filed the case in the Maldivian courts to impose the order on arbitration ruling after Sun travel failed to pay the damages.