The Civil Court has ordered FENAKA Corporation to pay MVR 27,119,072.49 to Apollo Holdings Private Limited within three months. The ruling comes after Apollo Holdings filed a case seeking payment for goods supplied on credit since 2020.
Court Decision
According to the court’s verdict, FENAKA failed to submit required documents within the stipulated timeframe to confirm receipt of the claim form. While FENAKA requested additional time via a letter dated September 1, their response was only submitted on September 16. The court rejected this response due to the lack of confirmation regarding receipt of the claim form.
The court ruled in favor of Apollo Holdings, confirming that the utility company owed the stated amount for unpaid dues related to the supplied goods.
However, the court did not award:
- Damages for delayed payments sought by Apollo Holdings.
- Legal fees amounting to MVR 25,000 requested by Apollo Holdings.
FENAKA's Financial Challenges
FENAKA, a state-owned utility company, has faced substantial financial difficulties in recent years. Upon assuming office, the current administration described the company as a “nest of corruption,” citing inherited debts of MVR 1.7 billion.
Within seven months of taking over, FENAKA’s new management announced that MVR 300 million in outstanding payments to 278 vendors had been cleared.
Despite its history of losses, FENAKA reported a profit of MVR 7 million in the second quarter of this year, signaling progress in its financial recovery.
The ruling emphasizes accountability for state-owned enterprises and underscores the importance of timely payment for goods and services. The order for FENAKA to settle its dues within three months adds further pressure on its management to address outstanding liabilities while maintaining its recent financial improvements.
