Injunction against Janashakthi refused

In a landmark Judgment, District Judge of Colombo K M Sumithrapala, refused the Interim Injunction sought by the National Development Bank Ltd. against Janashakthi Limited. and its related parties on December 13.

In his judgment, delivered after the Banking (Amendment) Act No.2 of 2005 came into operation, the Judge held that Janashakthi Limited. and its group are not in violation of the Banking Act.

This action was filed by National Development Bank Ltd. and its secretary C L Jayawardena against Janashakthi Ltd., D Schaffter, National Insurance Corporation Ltd., Waldock Mackenzie Ltd. and the Monetary Board of the Central Bank of Sri Lanka stating that the Janashakthi Ltd. group and its related parties should be prevented from interfering with the National Development Bank Ltd. from carrying out the provisions of the Memorandum and Articles of Association. An ex-parte Enjoining Order was issued in the first instance in favour of the Plaintiffs.