Director asked to repay loan

Sandasen MARASINGHE

Colombo Additional District Judge L. Liyanaarachchi ordered a director of Blue Diamond Limited to pay back Rs 1.5 million to the Company along with the interests that he obtained as a loan.

The Court ordered D.R. Senanayake, a director of the company to pay back a sum of Rs 1,420,000 as interests for the Rs 1.5 million he obtained from the company on November 11, 1997.

The Court issued order following the plaint filed by Blue Diamonds Limited citing D.R. Senanayake as the defendant.

The Plaintiff submitted that Senanayake obtained a cheque worth Rs 9.5 million from the Company on November 11, 1997 and managed to settle back Rs 8 million. But he failed and neglected to pay back Rs 1.5 million.

The defendant stated that he did not receive the cheque for his personal use but for a purpose of the company. He submitted that the said Rs. 1.5 million was paid to a person as a commission and the receipt was handed over to the Company.

The Company submitted that the said sum of money was granted to Senanayake as a personal loan and Senanayake failed to call for evidence to prove that he gave the said Rs 1.5 million as a commission.