Bank of Maldives BML says it would appeal the Civil Court's ruling that supports the claims of private company Kings Capital Holdings which has been accused of running a Ponzi scheme.
The company accused the Bank of deactivating its accounts illegally and the ruling passed by the Civil Court supported this claim.
After the ruling against the bank, BML said that it would be filing an appeal at the High Court following the decision by the lower court. BML further said that it hopes the High Court would consider both judicial and legal points that were overlooked at the Civil Court and that it would come to a more just ruling.
While the company was accused of running a Ponzi scheme last year, local authorities have been investigating the matter and BML subsequently deactivated its accounts.
Kings capital had asked the Civil Court to determine that BML had deactivated its accounts illegally and to rule that the company can demand compensation for the losses it had endured due to the Bank's decision.
In its ruling supporting the company's claim, the Civil Court noted that BML had deactivated the company's accounts only a day after sending en email to clarify why it had an increased number of deposits.
It further said that as per the Money Laundering Act, the Bank can only deactivate or freeze an account with a court order, it cannot act on its own on such cases.
The Court further said that the Kings Capital can file for compensation for the losses incured during the 14 days its accounts were deactivtated by the Bank.