High Court orders to halt execution of the Civil Court order to sell Funaddoo mortgages

High Court has issued a stay order upon Civil Court to halt the execution of the court’s ruling to sell off mortgages listed for MVR 117 million loans obtained in the name of Funaddoo Tuna Products.

The High Court order follows an appeal of the Civil Court ruling to sell the mortgages assigned to the MVR 117 million obtained in the name of Funaddoo Tuna Products by Henveyru-central MP Ali Azim, who is listed as one of the guarantors for the loans.

A copy of the stay order obtained by Sun states that the order was released on the 21st of January 2013, signed by High Court Chief Judge Ahmed Shareef Ali. It states that under Article 56 of the Constitution, all citizens have the right to appeal and that the postponement of an order upon its submission for appeal is a civil procedure that has to be followed in order to provide the right of appeal.

Although the order was signed by Chief Judge Ahmed Shareef Ali, the bench of judges presiding over the case consists three other High Court judges, Judge Ali Sameer, Judge Abdul Ganee Mohamed, Judge Dr. Azmeralda Zahir. The first High Court hearing for the case was held today.

Lawyer representing MP Ali Azim told the court today that the Civil Court ruling to sell the mortgages was issued before the deadline, stipulated in the order to repay the loan, had expired.

The lawyer said that on 8th of February 2010, Civil Court had issued a ruling that the loan should be repaid within 12 months and that the ruling was then appealed in High Court who had in turn issued a ruling on 18th May 2010 to halt the execution of the Civil Court ruling.

The lawyer stated that on 27th February 2012, High Court had issued a ruling to uphold the Civil Court decision and following a case submitted to the Civil Court by the Bank of Maldives (BML) on the 10th of June 2012 regarding the execution of the order, the court had ordered, on the 22nd of November 2012, that the due amounts for the loan be repaid, and that the duration allowed by the Civil Court in the last instance has not yet expired.

The lawyer also argued that a “writ of prohibition” issued by the Supreme Court in 2011 states that the payment for a civil case on appeal must be postponed until the case is decided.

MP Ali Azim’s lawyer further stated that the deadline allowed by the High Court had expired on the 26th of February 2013.

The lawyer also stated that it is out of the question to his client must repay the loan while the Civil Court order to repay the loan within 12 months has now been appealed.

Lawyer representing MP Ali Azim further asked the High Court to overrule the Civil Court ruling to sell the mortgages for the loans on the basis that the court had neglected proper judicial procedure during the proceedings of the case.

In conclusion of today’s hearing, the bench had allowed BML to present their argument to the court.

In reply to a letter from MP Ali Azim to the Civil Court to clarify whether he had any pending, Civil Court had stated that there are no debts recorded in the court.