State: Th. Elaa was repossessed over violation of spirit of contract

State prosecution argued Th. Elaa was repossessed from Villa Shipping and Trading Company Private Limited, and its contract rescinded because of violation of the spirit between the State and the company.

Civil Court had ruled State had violated the contract when it terminated the contract and repossessed the island from Villa.

State has appealed the sentence with High Court.

Speaking during the first appeal hearing held at court this Sunday, State attorney Salwa Habeeb said the “Amended and Re-stated Lease Agreement” made between the State and Villa was not terminated due to a violation of a letter of the contract, but for violation of the spirit of the contract.

Salwa said that according to Islamic fiqh, the spirit of the contract is prioritized over the letter when there is a conflict in interpretation of a contract two parties.

The contract was signed on December 12, 2013.

Villa will be provided the opportunity to respond to the argument made by the State during the next appeal hearing.