GMR wins stay order but Mal says no question of allowing airport contract

Dec 03 2012, 21:59 IST
Comments 0
The $500-million project was hanging in balance ever since the regime change in Maldives. (AP) The $500-million project was hanging in balance ever since the regime change in Maldives. (AP)
SummaryMaldives government said the termination order was 'non-reversible and non-negotiable'.

Indian infrastructure giant GMR won a short-lived reprieve from the Singapore High Court on Monday, which stayed the termination of its Mal airport project. However, immediately later, the Maldives government made clear its intentions not to allow the US $500 million contract, saying its order terminating the same was non-reversible and non-negotiable.

After the Maldivian governments November 27 order on the contentious project under political pressure, GMR had moved the Singapore High Court. As per the project contract, in case of any differences between parties, the law of either Singapore or UK had to apply.

In a statement in Singapore, GMR said the high court had granted injunctive relief against the applicability and operations of the Maldivian government order.

However, Maldives President Mohamed Waheeds press secretary Masood Imad told PTI that they believed no such injunction can be issued against a sovereign state. The governments decision is very clear. It is non-reversible and non-negotiable. Our decision was based on legal advice we got from our lawyers in the UK and Singapore... We believe the judge was incorrect in interpreting the law, Imad said.

He added that they had asked Maldivian Airport Company Ltd to go ahead with the takeover process, that would be done later this week.

Imad also argued that Where compensation is adequate, an injunction cannot be issued. A court cannot issue such an injunction against a sovereign state... .

While Indian officials refused to comment, GMR Infrastructure vowed to carry on with its legal battle.

Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...