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Court rejects UDA plea for time to pay Rs.102 million to plaintiff

by Kumar Wethasinghe

Judge L.K Wimalachandra yesterday dismissed an application made by the Urban Development authority, seeking further time to refund Rs.102,062,453 million which the Court awarded to South East Asia Construction Company (Pvt)Ltd, by the Colombo Commercial High Court on June 12, 2002.

When the case came up for hearing, an application was made on behalf of the defendant UDA, seeking nine months period to pay Rs.102 million which was awarded to the plaintiff by Court by way of a Mandatory Injunction on June 12, 2002.

At the stage, Romesh De Silva PC, Counsel for the plaintiff took strong objections and informed the Court that the UDA application was malafide. UDA has already agreed to pay the said sum of money by writing far back from 1999.

He further submitted that once a Court delivers an order and thereafter the Court becomes functus and can not vary its own order. Accordingly the three months time granted by Court lapses on September 12, 2002, while the defendant had not appealed against the said Mandatory Injunction.

Therefore unless the full amount is paid forthwith the directors of the UDA become liable to be charged for contempt of Court and for not carrying out the Mandatory Injunction already issued. Having heared the submissions made by both parties the Court refused grant further time to UDA for settlement and dismissed its application.

In this case admittedly a prime land in the heart of Colombo fort with an extent of two Roads and 14.8 perches was given on a 99 years lease to the plaintiff by the defendant in 8,10,92 on condition that the plaintiff shall construct a car park and a commercial shopping complex within two years.

By a subsequent deed, a second lease agreement was executed on condition that the plaintiff would develop the said land with three years from April 1996. However the lease agreement was terminated.

According to judge ment it is not disputed that the plaintiff had paid a sum of Rs 137,924,898.60 as lease rentals to the defendant. When the defendant cancelled the said agreement, he had agreed to refund a sum of Rs 102,062,453 to the plaintiff and retained the balance. However when the defendant failed and neglected to pay the said sum to the plaintiff. Action was filed and the Court issued Mandatory Injunction awarding the plaintiff Rs 102 million.

Romesh De Silva PC with Shanaka De Silva instructed by G.G Arulpragasam appeared for the South East Asia Contraction (Pvt) Ltd.

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