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Commercial High Court allows Union Bank Ltd its functioning in Sri Lanka

by Wasantha Ramanayake

The Colombo Commercial High Court varying an enjoining order allowed the Union Bank Ltd. incorporated in Pakistan to carry on its business in Sri Lanka under the name "Union Bank Incorporated in Pakistan" with its Logo.

Delivering the order on a motion filed by the defendant Union Bank Ltd., Faisalabad in Pakistan operating a branch office in Dharmapala Mawatha Colombo 7, Commercial High Court Judge L.K. Wimalachandra ordered that the word "Pakistan" to be displayed prominently and conspicuously. The size of the word would not be smaller than that of the "Union Bank".

Further, in terms of the order, the defendant was required to state that the bank was incorporated in Pakistan in all documents. The defendant bank sought to suspend or vary the enjoining that was earlier issued by the court retaining it from using the name "Union Bank" in the action filed by the Union Bank of Colombo Ltd.

Judge Wimalachandra observed that the enjoining order had caused grave hardship to the defendants as well as its customers, particularly Sri Lankan expatriates who were sending remittance from the Middle East. He further observed, "It's my considered view that the order made by the Court in issuing the said enjoining order has caused undue hardship to the defendant and to the public as well."

He further observed that the sudden stoppage of the business of the defendant had adversely affected its employees.

Plaintiff's Counsel S.L. Gunasekera submitted that the name "Union Bank" was the registered trade name of the plaintiff and the said name was identified with the plaintiff by the public, and the public, other commercial banks and the Central Bank of Sri Lanka had got confused and misled as to the sources of services provided by the plaintiff and the defendant.

Defendants counsel H.L. De Silva PC submitted that as a result of the enjoining order the entire business of the bank had come to a halt causing enormous loss to the defendants and its customers. He also contended that the plaintiff having suppressed the facts had obtained the said ex-parte enjoining order.

S.L. Gunasekera with Nigel Hatch instructed by Sudath Perera Associates appeared for the plaintiff.

H.L. De Silva PC instructed by F.J. and G. De Seram appeared for the defendant.

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