Mumbai, June 19: GMR Infrastructure today said it won arbitration proceedings in the Male airport case and the tribunal had asked the Maldivian government and the airport company to pay damages and $4 million in legal costs to GMR.
Lord Hoffman’s Tribunal in Singapore said the concession agreement was valid and binding and was not void for any mistake of law or discharged by frustration, according to an exchange filing by GMR Group.
The Maldives government and Male International Airport Company are jointly liable to pay damages to GMR for the loss caused by the wrongful repudiation of the agreement to modernise and operate the Ibrahim Nasir International Airport in 2010.
The $500-million contract was unilaterally terminated by the Maldives government and arbitration proceedings were initiated, seeking a declaration that the concession agreement was void ab initio on November 29, 2012. GMR disputed the termination.
“It has always been our firm belief that the cancellation of our concession agreement amounted to wrongful repudiation by the government of Maldives and the tribunal has upheld this stand,” GMR said in the filing.
GMR had sought damages worth as much as $1.4 billion from the Male authorities and said it was pressing ahead with the claim.