The High Court today ordered Sharu Launch Service’s Directors to be held personally accountable and pay back MVR 17.8 million to Fenaka Corporation in the case of bounced cheques against Sharu Launch Service.
Fenaka Corporation paid MVR 17.8 million to buy USD 1 million from Sharu Launch Service. However, all the cheques sent by Sharu Launch Service bounced. Fenaka sued Sharu Launch Service for failure to pay the agreed USD 1 million at the Civil Court back in 2017. The Civil Court ordered Sharu Launch Service to pay back the amount owed but the verdict did not specify that the directors of the company to be held liable.
The verdict set by the High Court today held the directors of the company personally accountable to repay MVR 17.8 million to Fenaka Corporation after Fenaka appealed the case at the High Court. Moreover, Sharu Launch Service has to pay the full amount within 3 months.
Judge Mohamed Niyaz stated that the directors of Fenaka at the time should take responsibility for not properly evaluating Sharu Launch Service despite knowing that company is not an authorised money exchanger, prior to making the payment of MVR 17.8 million. He also advised businesses to be more careful while making such procurements and make sure proper procedures are followed through.
Sharoo Launch Service has a history of fraudulent cases, including the STELCO and MCB cases.