High Court has ordered Meridiam Services to pay USD 1.234 million to State Trading Organisation (STO).
STO appealed the verdict of Civil Court in 2016 which was ruled in favour of Meridiam Services. In the appeal verdict, the High Court overruled the verdict issued by Civil Court, stating it is clear STO had released fuel to Meridiam Services on credit basis in 2010.
The High Court said written documents exchanged between STO and Meridiam Services also prove the transaction took place. In the ruling issued unanimously by all three judges on the bench, Meridiam Services was asked to pay USD 1.234 million within six months. If Meridiam Services failed to pay the amount by the deadline, STO was given the right to sell the vessels under mortgage as per the agreement between STO and the company.
In 2016, Civil Court ruled there was no proof that fuel was sold to Meridiam Services, as STO failed to provide the relevant papers. However, with a new administration taking office last November, the new management of STO retrieved and submitted the lost papers to the High Court.
Former Parliamentarian Riyaz Rasheed is a majority shareholder at Meridiam Services.