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| Tuesday, 5 August 2003 |
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SC dismisses special application of Monetary Board by Wasantha Ramanayake The Supreme Court yesterday dismissed the Special Leave Application filed by the Monetary Board of the Central Bank (MBCB) in connection with the Pramuka Bank issue. The Additional Solicitor General (ASG) Saleem Marsoof PC moved to withdraw the appeal since the MBCB had already suspended business of the bank and was in the process of restructuring it in terms of the Court of Appeal Judgement that issued writ of mandamus on the MBCB to consider the restructuring proposal by the Director Banking Supervision of the MBCB. The Bench comprised Chief Justice Sarath N. Silva PC, and Justices Dr. (Mrs.) Shirani Bandaranayake and C.V. Wigneswaran. Counsel M. A. Sumathiran for the depositors of the Bank submitted that the MBCB had given some of the bank directors access to its documents. He submitted that the matter was very serious since the same fraudulent directors had been charged before the Magistrate's Court. ASG Marsoof refuting the allegations submitted that all the documents were sealed and were under the direct supervision of the MBCB. He further submitted that the MBCB had to work with the said directors in paying the salaries of the employees and similar matters. Counsel for the depositors further submitted that MBCB so far was not properly complying with the Court of Appeal orders. The MBCB had not given the relevant information to the prospective financial institutions and as a result those institutions were unable to make any suggestions or submit their plans. The ASG submitted that the MBCB had only initiated the process and it was premature for the petitioners' counsel to make such remarks. He submitted that in due course it would take steps to arrange further discussions with the financial institutions and the representatives of the depositors. In this Appeal for Special Leave respondent-petitioner MBCB cited 225 petitioners-respondents including J.H. Rienzie Benedict who were depositors of the PSDB, and Central Bank Governor A.S. Jayawardane, Deputy Governor P. M. Nagahawatte, Director Banking Supervision P.P. Sirisena and PSDB as respondents-respondents. MBCB sought to set aside the Court of Appeal order dated July 2, quashing the cancellation of the licence of the PSDB. The suspension of the business of the PSDB was an alternative to its liquidation sought to by the MBCB that was vehemently opposed by the depositors. ASG Saleem Marsoof PC with Senior State Counsel Nihal Jayawardena and State Counsel Arjuna Obeysekera and W. Vigneswaran appeared for MBCB. M. A. Sumanthiran and Viran Corea appeared for petitioners. |
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