The Civil Court on Wednesday voided a settlement agreement between the main opposition Maldivian Democratic Party (MDP) and the national airline, Maldivian, ordering the party to make an MVR 3.6 million lump sum payment to settle its debt to the airline.
Maldivian had sued MDP over MVR 5.6 million in outstanding bills it racked up during the 2023 presidential elections. The MDP and Maldivian had previously reached a settlement agreement mediated by the court, with the airline agreeing to allow the party to settle its debt in installments by the end of 2027.
But Civil Court Judge Sinan Ali on Wednesday cancelled the settlement agreement, ordering the party to make a lump sum payment to clear the remaining MVR 3.6 million within 30 days.
Under the settlement agreement, Maldivian had agreed to allow the MDP to clear its debt in biannual payments over the course of two years.
But the national airline had lodged a case with the Civil Court seeking a lump sum payment citing that the MDP had failed to honor the settlement agreement.
MDP had argued in court that it had been unable to make the payments because of a holdup in the disbursement of funds it is entitled to by the state.
The party had asked for more time to make the payments – a request the national airline rejected.