Archives

SC extends interim order on defendant and five companies

by Wasantha Ramanayake

The Supreme Court further extended an interim order staying the operation of the Colombo Commercial High Court order and extended the consequential enjoining order which restrained Dr. Sena Yaddehige and five companies from nominating and appointing their nominees to the Board of Directors of the Richard Pieris and Company Ltd, today.

The order was a sequel to an application by counsel H. L. de Silva PC for the petitioners, Asia Capital Ltd. Colombo and Dirk Flamer Caldera, when the respondents' Counsel Romseh de Silva PC submitted that he was not ready to support the application for leave.

The Bench comprised Chief Justice Sarath N. Silva PC and Justices Dr. (Mrs.) Shirani Bandaranayake and Asoka de Silva.

The court order also extended two enjoining orders further restraining the defendants from transferring shares and exercising voting rights in respect of shares held by them in the said company unless a mandatory offer in terms of the Section 31 of the Takeover and Mergers Code of 1995 was made.

Counsel Romesh de Silva PC submitted that the petitioners had obtained the order wrongfully both misrepresenting the facts and law therefore the order had to be set aside.

He submitted that the petitioners had obtained the orders in terms of the Supreme Court Rule 43 (1) (A) without issuing notice to respondents and as an urgent matter.

He contended that there was no urgency since identical enjoining orders were in operation to the knowledge of the petitioners when they supported the application in the Supreme Court on October 7. By these orders, the respondents are restrained from nominating or appointing their nominees to the Board of Directors of Richard Pieris and Company Ltd, transferring shares and exercising voting rights in respect of shares held by them in the said company unless a mandatory offer in terms of the Section 31 of the Takeover and Mergers Code of 1995 was made. These orders were operative until October 7.

Counsel argued that in terms of the Rule 43 (1)(A) they should issue notice on the respondents. Also under the said Rule, only the execution of a judgement issued by a court could be stayed but not the consequential orders like the enjoining orders got reinstated by the petitioners.

H. L. de Silva PC on behalf of the petitioners objected to Counsel Romesh de Silva PC appearing on behalf of the respondent Sezaka Ltd. since a proxy had not been filed. Counsel submitted that the matter was fixed for support for leave and was ready to support the application. He submitted that he supported the application for interim relief in terms of the Proviso 757 of the Civil Procedure Code.

He submitted that although the assessment of the situation by the petitioners might wrong, there was no misrepresentation of facts and the notice could not be served on the respondents since several respondents were out of the jurisdiction of the court.

Romesh de Silva PC submitted that he was not ready to support the application for Leave.

H. L. de Silva PC with S. L. Gunasekera and Chanaka de Silva instructed by G. G. Arulpragasam and Sudath Perera Associates appeared for the plaintiff-petitioners Asia Capital Ltd. Colombo and Dirk Flamer Caldera.

Maithree Wickremesinghe instructed by Paul Ratnayake Associates appeared for Dr. Sena Yaddehige.

Romesh de Silva PC instructed by Srimal Weerakkody appeared for Sezeka Limited of British Virgin Islands.

N. R. Sivendran instructed by Upendra Gunasekara appeared for Mogul Fund and Investor Access Equities Asia Pvt. Ltd.

Nihal Fernando with Rajindra Jayasinghe and R. Anthony instructed by Murugesu and Neelakandan appeared for S.C. Capital Ltd.

The case was put off.

News | Business | Features | Editorial | Security
Politics | World | Letters | Sports | Obituaries |

Produced by Lake House
Copyright 2001 The Associated Newspapers of Ceylon Ltd.
Comments and suggestions to :Web Manager