Friday Nov 15, 2024
Friday Nov 15, 2024
Saturday, 17 December 2016 00:00 - - {{hitsCtrl.values.hits}}
Counsel Sanjeeva Jayawardane PC appeared for the Lanka Coal Company and reported to the Supreme Court yesterday (16) that the Arbitration Panel considered the petitioner’s application for Interim Reliefs and issued the reliefs in respect of the spurious claim of $42,741,750 by the London-based Liberty Commodities Ltd.
The Bench, comprised of, Justices Priyantha Jayawardane, Upaly Abeyrathne and Nalin Perera fixed for argument on May 16 the appeal filed by the Lanka Coal Company.
The Court on 1 December has extended the Interim Stay Order until yesterday (16), restraining the London-based Liberty Commodities Ltd from encashing the Letter of Credit and restraining the other two Banks including People’s Bank from encashing the Letter of Credit.
Lanka Coal Company (LCC) initiated legal action against the London-based Liberty Commodities Ltd. on the alleged spurious claim of a Gross Calorific Value (GCB), that is, the total amount of heat released when a fuel is burned) bonus.
The LCC imports coal through a process of coming into long term agreements with suppliers as well as a process of spot tenders to Lak Wijaya Coal Power Plant situated at Norochcholai.
LCL appeal to the Supreme Court lamenting that the refusal of the High Court to certain interim injunctions would effectively result in massive sum of money, being public funds, being withdrawn by the Liberty Commodities Ltd. on several Letters of Credit, thereby posing a very grave and imminent monetary threat of great magnitude to LCL.
It filed legal action in the Commercial High Court of Colombo, citing Liberty Commodities Ltd. (LCL), Peoples Bank, and ING Belgium in Switzerland as Defendants seeking an Enjoining Order from the Court to restrain the defendant LCL from encashing the Letter of Credit and restrain the other two defendants from permitting the first defendant LCL to encash the Letter of Credit.
The High Court rejected the application for Interim Injunction on People’s Bank, being aggrieved by the High Court order, Plantiff LCC filed an appeal before the Supreme Court seeking to set aside the said order.
Sanjeeva Jayawardane PC with Farman Cassim, Charaka Jayaratne instructed by G. G. Arulpragasam appeared for the Petitioner. Uditha Egalahewa PC appeared for Liberty Commodities Ltd. Upul Jayasuriya appeared for People’s Bank.
