HDC appeals High Court verdict in Jaah case to Supreme Court

The Housing Development Corporation (HDC) has filed an appeal with the Supreme Court challenging the High Court's ruling that it engaged in obstruction of justice during a trial.

In June, the High Court determined that HDC had improperly conducted itself in a case initiated by Shunana & Co against HDC and Jaah Investments. Shunana & Co is a legal firm representing purchasers of incomplete luxury apartments developed by Jaah Investment. This High Court decision arose from the procedural objection raised by HDC in the appeal.

Records from the Supreme Court registry indicate that the High Court's unanimous decision, rendered by a three-judge panel, was submitted by HDC to the Supreme Court last week. However, the Supreme Court has yet to decide on the admissibility of the motion.

When Shunana approached the High Court, HDC requested the court to mandate a security deposit of MVR 15,000, representing the cost of the appeal. HDC further sought the dismissal of the case if Shunana failed to provide the funds.

However, Shunana argued that this proposal lacked a genuine basis and constituted a frivolous waste of time, disregarding legal principles. Shunana requested the court to admonish HDC against future similar incidents and to issue a written assurance that proceedings would be conducted appropriately.

The High Court ruled that HDC failed to clarify which conditions necessitated a security deposit from Shunana. The decision also stated that HDC had not fulfilled its responsibility by requesting this solely based on it being previously documented.

The court found no grounds to dismiss the case and granted HDC 30 days to furnish written assurances that the proceedings would be conducted properly.

The judicial panel, consisting of Justices Dheebanaz Fahmy, Hussain Mazeed, and Mohamed Shaneez Abdulla, delivered a unanimous ruling.

Jaah commenced development of ‘The Gardens’ flats in Hulhumale in 2017. However, the project remains incomplete to date. The flats have not been transferred to those who made payments for an extended period.

HDC has granted Jaah multiple extensions to finalize the project. Due to non-compliance, HDC has terminated its agreement with the company and ordered the handover of the site.

Rasheed Carpentry (RCC) was awarded the contract in June to complete the outstanding works on the Jaah flats.