Introduction 

Those following the case closely would be aware that the High Court in Sun Travels and Tours Pvt Ltd v Hilton International Manage (Maldives) Private Limited [2022/HC-A/26] held that a recognition order in relation to the foreign arbitral awards in Hilton’s favour shall first be issued by the Civil Court prior to commencing enforcement action. 

In this regard, Hilton filed an application for a recognition order under the ongoing Civil Court proceedings [1652/Cv-C/2020]. Sun was granted the opportunity to file its submissions under
Section 74(a) of the Arbitration Act, but instead Sun filed procedural objections noting that: 

• Procedural Objection 1: The presiding judge in 1652/Cv-C/2020 does not have jurisdiction to conduct the case as the High Court had transferred the case back (thahuveel) to Civil Court for a new determination on the case – with reference to Section 46(b) and 47(c) of the Judicature Act;
• Procedural Objection 2: There is no procedure for enforcement of foreign arbitral awards in Maldives, as the Civil Procedure Rules sanctioned under the Civil Procedure Act does not consist of rules/procedures for enforcement of foreign arbitral awards in Maldives;

Court’s finding on Procedural Objection 1 

It was noted in the judgement that Section 46(b) and 47(c) of the Judicature Act may be invoked by the High Court in situations where there is a final judgement on substance of the case. 

However, given that both Sun Travels and Tours Private Limited v Hilton International Manage (Maldives) Private Limited and 4 Ors [2021/HC-A/121,122,123,124] and Sun Travels and Tours Pvt Ltd v Hilton International Manage (Maldives) Private Limited [2022/HC-A/26] resulted from procedural decisions issued in the enforcement of the arbitral awards in Hilton’s favour under the case 1652/Cv-C/2022 (which is still ongoing), the judge ruled that Section 46(b) and 47(c) of the Judicature Act is not applicable in this instance. 

Court’s finding on Procedural Objection 2 

The judge noted that the pro-enforcement High Court decisions in Sun Travels and Tours Private Limited v Hilton International Manage (Maldives) Private Limited and 4 Ors [2021/HCA/121,122,123,124] and Sun Travels and Tours Pvt Ltd v Hilton International Manage (Maldives) Private Limited [2022/HC-A/26] provide guidance on the procedure for enforcement. In addition, she also made reference to Chapter 10 of the Arbitration Act, the High Court Regulation No. 2013/R-1698 and Article 3 of the New York Convention to rule there is a set procedure for enforcement of foreign arbitral awards.

The judge further noted the importance of upholding justice and the duty of the courts to find relief for the party seeking justice - parties ought not be disadvantaged in the absence of a ‘perfect’ procedure which shall be followed. 

It was held that Sun’s submissions that there is no procedure for enforcement of foreign arbitral awards has no merit and is a tactic to further delay the enforcement proceedings. 

Upon dismissing Sun’s procedural objections, Sun was still given a deadline to make submissions under Section 74(a) of the Arbitration Act.