Notice served on Kings Lanka Director

Sarath Malalasekera

Colombo Commercial High Court Judge Rohini Walgama recently issued notice on Kings Lanka Super Market (presently known as Lanka Super Market Limited) Director Diresh Hettiarachchi to be present in court on the next date.

The Colombo Commercial High Court Judge issued notice on Director Diresh Hettiarachchi on an application by the creditors- Bairaha Foods, Bairaha Farms and Lanka Bell requesting Court to make several orders for the monies obtained from the transfer of assets and transfer such monies to the petitioner company account.

The creditors alleged that Kings Lanka Market had been sold to a company called K.H.L. Distributors, a subsidiary of Kshathriya Holdings Limited. The creditors also alleged that monies obtained had not been transferred to the company for this transaction.

The creditors have asked the said Director to disclose to court the monies obtained from the transfer of the assets and if the court is to proceed with the winding up as requested by Kings Lanka Super Market itself that the monies from the transfer of assets be repaid to the company.

The creditors also forwarded a copy of a document dated June 26, 2007 where K.H.L. Distributors had allegedly claimed that they are the present owners of the Super Market and that they are a fully owned subsidiary of Kshathriya Holdings Limited, a company listed in the Stock Exchange.

The creditors senior counsel referred to the sequence of the transaction and the resolutions to wind up and said that just a few months back to the Super Market has been sold leaving only the debts.

The creditors also alleged that the petitioners Lanka Super Markets have abused the court process and obtained orders and that the petition is not in conformity to the Companies Act of 2007.

The creditors requested court through their Attorneys to wind up the company as the petitioner company itself had indicated that it has been running at a loss and cannot continue with the normal business and that there is no prospect of business being continued.

Further inquiry was fixed for March 18.

President's Counsel Nihal Fernando with Kushan de Alwis instructed by Attorneys Pieris and Pieris appeared for the petitioner.

Hiran de Alwis with C. Jayamaha instructed by Srimal Weerakkody and Viswa Law Office appeared for the creditors.