Sunday Jan 19, 2025
Sunday Jan 19, 2025
Wednesday, 18 December 2024 00:04 - - {{hitsCtrl.values.hits}}
The Commercial Bank of Ceylon PLC instituted a winding up application bearing No. HC (Civil) 44/2024/CO by Petition dated 27 June 2024 against Almar Teas Ltd. under the provisions of the Companies Act, No. 07 of 2007 on the basis that that Almar Teas Ltd. failed to honour a statutory demand and thus should be deemed insolvent. On such basis publications effected and the matter was fixed for inquiry on 20 December 2024.
However, Almar Teas Ltd. by way of a Motion dated 6 November 2024 preferred an application and moved that the entire winding up application is per incuriam, grossly misconceived and untenable in law and sought for the immediate dismissal of the winding up application.
On 19 November 2024, both parties made extensive Oral submissions and on behalf Almar Teas Ltd. it was submitted that the statutory demand does not comply with the mandatory provisions of the Companies Act, No. 07 of 2007, the winding up application is orchestrated for the purpose of threatening the company, the debt in any event is a bona fide disputed debt and that the debt is covered by mortgages on stock and book debts with an accumulated value higher than that of the total sum of money demanded by the bank. On behalf of Commercial Bank, it was submitted that the bank has followed the provisions of the law and in any event Almar Teas Ltd. cannot prefer an application of this nature by way of a Motion and must make an appropriate application at the inquiry fixed for 20 December 2024. Thus, the Learned Judge of the Commercial High Court K.P. Fernando upon being satisfied, fixed the matter for order on the objections of Almar Teas Ltd. on 6 March 2025 with Written Submissions to be filed one month before and on that basis proceeded to suspend the inquiry fixed for 20 December 2024.
The Commercial Bank of Ceylon PLC was represented by its Counsel Shivan Coorey Attorney-at-Law and Almar Teas Ltd. was represented by its Counsel Attorneys-at-Law Nishan Sydney Premathiratne, Vikum Jayasinghe and Dilmi Jayatissa on the instructions of Chanuka Ekanayaka.
