Civil Court orders state to pay MVR 12.7 million to Center Enterprises

Civil Court has ordered the state to pay MVR 12.7 million to Center Enterprises within a month.

The order was issued following a lawsuit over unpaid dues for water tanks supplied to the Ministry of Environment.

The private company filed the case seeking recovery of the outstanding amount, along with MVR 17 million in penalties for delayed payment.

The Court did not dismiss the penalty claim, citing that the agreement did not prohibit imposing penalties for non-payment.

In its ruling last week, the Civil Court said that documentation clearly showed the state had failed to pay for the supplied water tanks. The court ordered the full payment of the outstanding MVR 12.7 million to be made within 30 days as the company is rightful to the amount.

This is not the first time Center Enterprises has taken legal action against the state. In February this year, the Department of Medical Services was also ordered to pay MVR 32.7 million for goods supplied between 2006 and 2008.

The Civil Court ruled and the High Court later upheld that the department must pay USD 2 million for the value of the goods.