High Court orders Civil Court to reconsider Ensis’ subsidy challenge against MIFCO

The High Court has ordered the Civil Court to reconsider the case filed by private fish exporter Ensis Fisheries Pvt Ltd against state-owned MIFCO, concerning the government’s decision to subsidize fish purchases.

Ensis filed the lawsuit challenging the government’s policy of subsidizing MIFCO to purchase fish at MVR 25 per kilo from 16 September 2023. The company sued three ministries, Fisheries, Economic Development, and Finance, arguing that subsidizing only MIFCO, without extending similar support to private exporters, amounted to an attempt to undermine private enterprises in violation of the Competition in the Commercial Sector Act.

The Civil Court initially dismissed the case, ruling that the subsidy decision was a matter of government policy, and that the Competition Act could not be used to hold the government liable. The court also said Ensis had not sufficiently clarified how the claims related to the three ministries named in the suit.

Ensis appealed the dismissal at the High Court, arguing that government-owned companies and their commercial practices are not exempt under the Competition Act. Ensis further contended that the relief sought was specific to Ensis and did not require the inclusion of additional parties.

On Thursday, the High Court ruled that the Civil Court’s decision must be quashed, and ordered the lower court to reconsider the case and interpret the claims on their merits.

In its judgment, the High Court stated that determining whether the Competition Act applies to the government’s subsidy decision, or whether the decision falls under sovereign authority, can only be resolved through substantive hearings, not by excluding the case on procedural grounds.