A prominent café in Hulhumalé, Dhidhdhoo Hotaa, has been ordered by the Civil Court to vacate its premises within 15 days, following a legal dispute over the validity of its lease.
Situated on the ground floor of Goodwill, Nirolhu Magu, Dhidhdhoo Hotaa had occupied the space under a lease agreement that expired on 31 December 2023. While the café’s proprietors claimed the lease had been verbally extended for a further three years, the property owners disputed this, insisting that no formal extension had been granted and that the café was now operating without their consent.
The matter was brought before the court after the café owners petitioned to prevent eviction prior to the expiry of what they argued was an extended agreement, and to secure compensation for their investments should they be required to vacate. Conversely, the property owners maintained that any such verbal agreement was invalid, noting that permission had been granted only for continued operation until February 2025, but that rent payments had lapsed and the requisite three-month notice to vacate had not been served.
During the hearing, it emerged that the alleged verbal extension was made with the husband of the plot owner. However, the court found insufficient evidence to prove that the husband was authorised to negotiate or approve a lease renewal on behalf of the property owner.
In its ruling, the Civil Court concluded that the café’s continued occupation was unauthorised. The premises are to be vacated and returned to the rightful owner within 15 days. The judgment further stated that no compensation or reimbursement for investments would be awarded to the café proprietors.
This decision brings to a close a highly publicised tenancy dispute, underscoring the importance of clear, documented agreements in commercial property arrangements in the Maldives.