A Singapore court ruled in Maldives' favour on Thursday, overturning an earlier order won by GMR Infrastructure that had suspended the South Asian state government's decision to cancel its $511 million airport development contract with the company.
A judge at the Singapore Supreme Court ruled in the favour of Maldives, meaning it can go ahead and cancel the contract, effectively taking control from GMR.
The ruling comes after an order won on Monday by GMR that had suspended the government's decision to cancel the contract, although the Maldives had still been pressing ahead with plans to take over the airport.
"The Maldives government has the power to do what it wants, including expropriating the airport," Sundaresh Menon, the Chief Justice of Singapore, said in court.
Shares in GMR were down about 3.5% following the ruling after earlier being in positive territory on the day.
A GMR spokesman declined immediate comment.
"We don't see any hiccups now. There won't be any problem. They will hand over the airport to us by December 7. All senior managers and consultants are working on that now," a Maldives government official told Reuters, declining to be named.
The standoff over the project threatens to cloud foreign investor sentiment towards Maldives, which is seeking overseas cash for many of its tourism projects.
The country terminated an agreement with GMR last week, rattling its relations with India.