Steward Malta has unexpectedly ceded a case it had filed against one of the investors in the Vitals hospitals deal.

The abrupt decision means an English court judgement in the favour of investor Ambrish Gupta will be upheld. It was previously reported, incoreectly, that former Maltese prime minister Joseph Muscat was expected to testify. He was not summonsed by any party.

Steward had filed a case against investors Medical Associates of North Virginia Inc, a case that started in a London court and during which the healthcare company alleged that MANV investor Ambrish Gupta was involved in irregular and collusive practices with the government of Malta.

Mr. Justice Robert Mangion had allocated 3 hours to hear witnesses.

But the sitting only lasted minutes as, when the case was called at 11am on Tuesday, the judge observed that a note had been filed by the plaintiffs, ceding the case. It is understood that no reason was specified in the note, which was filed by lawyers Joseph Camilleri and Nicole Fenech. None of the witnesses attended today’s sitting.

Steward was challenging Gupta’s expectations of a €6 million payout, claiming the original Vitals concession was obtained fraudulently. In a related case, Nationalist MP Adrian Delia insisted this admission means the hospitals privatisation contract has to be rescinded.

The claim concerns a multi-million loan that Gupta had made to Vitals’ ultimate beneficial owner – Bluestone Investments – when it was negotiating the concession for St Luke’s, Karin Grech and Gozo hospitals in January 2015.

In March 2015, Gupta reached a deal on how to finance the Vitals project, with Bluestone owners Mark Pawley and Ram Tumuluri, Portpool Investments (PIL) and Bluestone Special Situation 4, another Bluestone offshore company.

Vitals was granted the government contract in November 2015.

Gupta and MANV had advanced $4 million to Bluestone Investment Management, as well as another $650,000 as a bond payment for the Vitals concession. But a dispute arose in September 2016 over Gupta’s and MANV’s share in the Vitals Global Healthcare Malta hospital privatisation project.

Gupta was then accused of endangering the €200 million project, and the opposing sides lawyered up.

A $10 million settlement was subsequently reached in December 2016 under the terms of which $5 million was settled straight away, but another $5 million, at 8% interest, had to be paid up by February 2017. The second tranche was never paid, and Vitals eventually sold off its concession to Steward Healthcare International in December 2017, and the dispute dragged on into 2019.