MPL ordered to honor fuel supply contract with Meridium

Maldives Ports Limited (MPL) has been ordered by Civil Court to honor its contract with Meridium for supply of diesel.

Meridium filed the lawsuit with Civil Court claiming MPL was supplying diesel from other sources, in violation of the contract between MPL and Meridium to make Meridium the sole supplier of diesel to MPL.

Civil Court issued its ruling in favor of Meridium this Monday, December 19, ordering that MPL honor its contract with the company.

In comments to press, CEO of MPL, Mohamed Junaid claimed that Meridium was hired to supply diesel to MPL without a bidding process.

This claim was refuted by Civil Court, which said in its ruling that Meridium had sent in its bid proposal in response to an announcement made by MPL, and that it won the bid after scoring the highest marks.

Civil Court also refuted MPL’s claim that there was no clause in the contract which banned MPL from using diesel suppliers in addition to Meridum. The court in its ruling said that choosing a party through bidding in itself was a transaction to guarantee MPL will not be buying diesel from any other supplier.

Civil Court said that Meridium was therefore awarded the contract based on that understanding.

Court ordered that MPL honor the contract.