PHILIPSBURG - The Court of First Instance ordered Fralexia Limited on Friday to remove a chain with lock barring the entrance gate to Bliss nightclub on the premises of Caravanserai Beach Resort in Beacon Hill.

 

In the injunction, filed against Fralexia by Caravanserai's new owner Alegria Real Estate BV, Fralexia was also ordered to refrain from collecting rent from Chinese restaurant Dragon Gate and Sunset Beach Bar and Grill, which are also located at the resort.

 

The Judge attached penalties to the verdict in the amount of US $1,000 per day, in case of non-compliance, to a maximum of $200,000. Fralexia was also ordered to pay the legal fees, which were set at NAf. 2,229.

 

The Court ordered Fralexia to remove the chain and lock from Bliss' entrance gate within two days after receipt of the verdict. In case of non-compliance, Alegria would be entitled to seek assistance of the Police and other judicial authorities to have the chain removed at Fralexia's expense.

Fralexia was also barred from collecting rent and was ordered to send letters to Dragon Gate and Sunset beach bar and grill reading: "By order of the Court of First Instance of St. Maarten, Fralexia Limited hereby withdraws any and all correspondence to you in which you have been requested to continue paying the monthly rent to Fralexia Limited for the period after September 15, 2014, for the properties you use at Caravanserai Beach Resort."

 

Alegria is the new owner of Caravanserai, which was purchased at an auction commissioned by Scotiabank on August 13.

 

Fralexia had purchased properties on long-lease from the resort's former owner Kildare Properties Ltd, but these purchases, which were split off from the resort, were found illegal by the Court.

 

Splitting of long-lease rights is not allowed without the owner's permission. The owner, in this case Country St. Maarten, had never given the required permission. This had led to a situation in which Fralexia rented out lots to Dragon Gate, Sunset and Bliss to which it was not entitled. In doing so, Fralexia had damaged new owner Alegria's right, the Judge established.

 

The Court dismissed Fralexia's statements saying that denying it ownership to the properties would be "unreasonable" and "unfair," as this would mean that Fralexia had paid $1.5 million to Kildare for nothing.

 

The Court, however, said that this had no effect on Alegria's position in this case, because the sale was made between Fralexia and Kildare and not with Alegria.

 

The Daily Herald