High Court rules against Alpha MVKB duty free shop
13 Dec 2011, 5:34 PM
Eleanor Johnstone
The High Court today backed the Civil Court ruling that GMR’s decision to terminate its contract with Alpha MVKB duty free shop at the Ibrahim Nasir International Airport in March was valid, and that MVK’s request to extend the notice until December 31 violated its contract with GMR.
According to the ruling, GMR had vacated the Alpha MVKB Duty Free Shop at Ibrahim Nasir International Airport (INIA) legally and according to the agreement between both companies.
The High Court noted that GMR gave notice on March 1 and, as per the agreement, the contract terminated on March 31. As no party could extend the termination notice, the court concluded that MVK had no right to remain at the airport without approval from GMR.
Alpha MVKB was leased for 10 years under an agreement between MVK and Maldives Airports Company Limited (MACL). The agreement requires the party wishing to terminate the agreement to give a one-month notice; the High Court stressed that both parties had that right.
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