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Singapore HC stays termination of GMR contract Last Updated : 03 Dec 2012 12:16:53 PM IST GMR contract: Singapore HC stays termination
The project aimed at for modernising the Male international airport, paving way for the operations to continue.
"The Singapore High Court has passed an injunction against the Maldivian Airport Company Limited (MACL) and the government from taking any action based on the November 27 letter," a GMR spokesperson told.
The MACL, based on the directions of the new Maldivian government, had on November 27 terminated the contract given to GMR in 2010 during the previous regime of President Mohamed Nasheed.
Asked, if GMR will continue to operate the airport, the company official said, "We will. The arbitration process will continue on the side".
As per the contract, in case of differences between various parties, the law of either Singapore or UK would apply.
India, which had reacted sharply to the termination, had in a high-level meeting reviewed overall 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.
Maldivian President Mohamed Waheed had said the contract was invalid and was signed under "dubious" conditions by the Nasheed regime.
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