The agreement government made with Mandhu College to run MES was terminated against the law rules Supreme Court.
Mandhu College was awarded the MES building by the Education Ministry to run an international high school for a period of ten years in 2008.
Mandhu College submitted the case to the Civil Court in 2016 requesting damages and legal fees as compensation. The Civil Court initially ruled in favor of the government, in turn Mandhu College submitted an appeal to the High Court requesting to revise the decision made by the Civil Court.
The High Court ruled in favor of the College after the appeal stating that the agreement was terminated unlawfully and that it could claim compensation against the government.
The case was again appealed to the Supreme Court which upheld the previous verdict of the High Court. Supreme Court stated that the government had not been able to prove that the school was not operating as per the agreement and the decision to close down the school was not based on any real evidence.
The verdict by Supreme Court stated that the Education Ministry was required to issue permits which was not provided when the company was ordered to close down the college and vacate the premises. Moreover, the government failed to take any actions to hold Mandhu College liable for not operating the school within six years of awarding the contract.
The bench of justices comprising of Justice Ali Rasheed Hussain, Justice Dr. Mohamed Ibrahim, and Chief Justice Muththassim Adnan also ruled that the Education Ministry terminated the agreement under good faith after finding that the agreement with the College was not made in a way it considered compatible to run a high school and further noted that the facts presented in the case show that the government did not take any measures to reduce any potential damages that might be inflicted.