Civil Court Orders FENAKA to Pay MVR 27 Million to Apollo Holdings

The Civil Court has ruled that FENAKA Corporation must pay MVR 27,119,072.49 to Apollo Holdings Private Limited within three months. 

The decision was issued following a case filed by Apollo Holdings to recover the amount, which they claimed was owed by FENAKA for goods supplied on credit since 2020.

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According to the court’s ruling, FENAKA failed to submit documents within the stipulated timeframe to confirm receipt of the claim form. The company had requested additional time to respond via a letter dated 1st September but only submitted its response on 16th September. The court rejected the response, citing the absence of confirmation from Fenaka regarding receipt of the claim form.

The Civil Court ruled in favour of Apollo Holdings, determining that FENAKA owed the stated amount as unpaid dues for the goods supplied. The payment is to be made within three months from the date of the ruling, issued on Sunday.

However, the court did not award damages sought by Apollo Holdings for delayed payments or the MVR 25,000 claimed as legal fees.

FENAKA, a state-owned utility company, has faced scrutiny in recent years. After the current administration took office, it described the company as a “nest of corruption.” The new management inherited debts of MVR 1.7 billion, but within seven months, announced they had cleared MVR 300 million in outstanding payments to 278 vendors.

Despite its financial struggles, FENAKA reported a profit of MVR 7 million in the second quarter of this year, marking a turnaround from its previous history of consistent losses.