Kulhudhuffushi Council files appeal with High Court after lawsuit against Fenaka dismissed

The Kulhudhuffushi City Council has filed an appeal with the High Court after a lawsuit it filed against Fenaka Corporation was dismissed by the Civil Court.

The lawsuit in question was filed back in June, with Kulhudhuffushi City Council claiming that Fenaka had refused to sign an agreement with them for the provision of electricity services in the northern city.

The Kulhudhuffushi City Council cited provisions of the Decentralization Act, which declare the provision of electricity services in islands as the responsibility of local councils, and require the council to make an agreement in place if the service is provided through a third party.

The Kulhudhuffushi City Council argued that the refusal by Fenaka to sign the agreement amounted to obstruction of the council from performing its legal duties.

However, Fenaka argued that given the corporation was established under a presidential decree with a specific mandate to provide utility services to islands, it does not fall under the “the party” referred to in the Act.

The Civil Court had dismissed the lawsuit, citing that Fenaka wasn’t providing electricity services of its own volition, but was entrusted with doing so by the central government.

The Kulhudhuffushi City Council appealed the decision with the High Court this week. However, the court has yet to make a decision registering it.