RDC ordered to MVR 11.7M to Indian company

The Civil Court has ordered the Road Development Corporation (RDC) to settle a debt of more than MVR 11.7 million owed to Indian company Lucky Global Projects Private Limited within seven business days.

The ruling delivered by Judge Fayyaz Shathir on Monday followed a lawsuit filed by Lucky Global seeking to recover outstanding payments under settlement agreements reached between the two parties in 2023. The agreements were entered into to resolve disputes arising from previous contractual obligations between the parties.

Upon receiving the claim, RDC acknowledged the full amount owed but requested that the court allow the debt to be repaid through a flexible installment plan, citing the corporation's financial difficulties. However, Lucky Global rejected the proposed staggered payment arrangement and requested a judgment without a hearing.

The court ruled that, as the debtee had not consented to an installment-based payment plan, the applicable legal principles required the debt to be recovered within the shortest possible period. Accordingly, RDC was ordered to pay the full amount of MVR 11,784,581.63 to the Civil Court within seven working days, effective from October 12, 2024.

Although Lucky Global sought MVR 20,000 in legal costs, the court rejected the request on the grounds that the expense had not been included in the original statement of claim.