Indian company files for arbitration against Maldives govt
Indian company, Lucky Exports has filed an arbitration claim against the Maldives government.
The company was awarded a project to develop a water and sewage system in Lh. Naifaru and a sewage system in Th. Veymandhoo on June 18, 2017. However, the agreement was terminated by the government, stating that the company had violated the terms of the agreement.
The company had offered US$ 483,451 as a performance guarantee when the project was initiated. Maldives government requested the bank which issued the guarantee, India’s Syndicate Bank to release the funds. However, Lucky Exports company filed for a temporary order to stop the funds from being released at New Delhi’s High Court. The court on January 29 this year issued the order. While the court has granted the opportunity for the Maldives government to respond, the Maldives government’s response was sent to the court on August 14.
The company has challenged the Maldives government’s decision to terminate the agreement and filed an arbitration claim on March 13. The company wishes to receive compensation for damages and arbitration expenses.