Civil Court upholds Malaysian arbitration ruling

The Maldives Civil Court has ordered the implementation of a ruling by an international arbitration tribunal.

Malaysia’s Kuala Lumpur Regional Center for Arbitration  ruled that a Maldivian company Gasveli Island Private Ltd must pay US$445,216.66 to International Construction Consortium.

The ruiling marks the first time a Maldivian court has ordered the implementation of an international arbitration verdict.

The Civil Court has ruled the Maldivian company must pay the amount to the court within three months. The ruling was issued in the absence of Gasveli.

Chief Judge Ali Rasheed Hussain said that, while the law is unclear on which court a complainant must ask for implementation of the arbitral award, regulations compiled by the High Court say the Civil Court can take up such cases.

The regulation states that the Civil Court can use procedures in place for for implementing arbitration awards.

The Maldivian government is currently awaiting the outcome of an arbitration process in Singapore over its abrupt decision to terminate an airport development contract with Indian infrastructure giant GMR.