The case of credit facility’s credit limit reduction for Meridium – owned by Vilufushi MP Riyaz Rasheed – ruled as legitimate by High Court has been presented to Supreme Court for appeal.
STO had reduced the credit limitations given to the Meridium – a petrol station run at the far east end of Malé.
Initially it was agreed between STO and Meridium to issue oil or petrol worth of MVR 20 million per month، with 40 days subjected for payable period. However STO had changed the credit limit to MVR 10 million worth of oil or petrol per month for Meridium back in 2010.
In addition to this، payable period was reduced to 30 days time from 40 day period.
The case was initially presented to Civil Court، and the court had ruled out that the decision was on legitimate terms. Similarly High Court had followed suit and supported the verdict of Civil Court.
High Court had stated that the “business amendment” – inclusive of the credit limit reduction and payable period – was agreed by both parties، thus no claims can be made of misconduct on STO’s end.
Supreme Court had now accepted the appealing process of the case.