Singapore HC stays termination of GMR Male airport contract

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HC's stay order on Maldives axing $500 mn contract paves way for operations to continue.  (Reuters) HC's stay order on Maldives axing $500 mn contract paves way for operations to continue. (Reuters)
SummaryHC's stay order on Maldives axing $500 mn contract paves way for operations to continue.

relationship with Maldives.

The Cabinet Committee on Security, chaired by Prime Minister Manmohan Singh, took into account the developments surrounding cancellation of the contract and its possible wider consequences.

India had termed the termination decision a "very negative signal" to foreign investors.

Our decision to terminate GMR contract is "non-reversible"

Male, (PTI): Unperturbed by the Singapore High Court stay on its termination of Male airport contract given to GMR, Maldives today made it clear that its decision was "non-reversible and non-negotiable" and said no such injunction can be issued against a sovereign state.

"The government's decision is very clear. It is non-reversible and non-negotiable. Our decision was based on legal advice we got from our lawyers in UK and Singapore," Maldives President Mohamed Waheed's press secretary Masood Imad said.

The Singapore High Court today stayed the Maldives government's decision to terminate the USD 500 million contract awarded to a GMR-led consortium for modernising the Male international airport.

Asked about the government's reaction to the Singapore court's order, Imad said, "We believe the judge was incorrect in interpreting the law".

He added, "Where compensation is adequate, an injunction cannot be issued. A court cannot issue such an injunction against a sovereign state.

"The laws of Singapore and Britain is very clear. It does not permit issuing an injunction where compensation is adequate".

The official said Maldives have initiated the arbitration process and "GMR will be compensated".

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