Saturday Nov 30, 2024
Saturday Nov 30, 2024
Thursday, 1 April 2021 03:34 - - {{hitsCtrl.values.hits}}
The Commercial High Court Judge Priyantha Fernando issued an enjoining order against Lanka Sathosa Ltd. from obtaining money upon a performance bond given to it by Softwatch Infosys Ltd.
The plaint of the Plaintiff, Softwatch Infosys, stated, inter alia, that Lanka Sathosa, the first defendant in the action, was wrongfully trying to encash the bank guarantee issued by Hatton National Bank (HNB), the second defendant, in favour of Lanka Sathosa, by Softwatch Infosys.
Even though Lanka Sathosa has stated that a forensic audit could be conducted and completed on the POS and ERP system delivered to Lanka Sathosa by Softwatch Infosys, the latter stated in its plaint that it had completed the POS and ERP system integrating all Lanka Sathosa outlets and warehouses, but Lanka Sathosa was not making the balance payment of Rs. 112.9 million.
Further, Softwatch Infosys stated in its plaint that the demand made by Lanka Sathosa to HNB to encash the bank guarantee is illegal.
Considering the submissions, Commercial High Court judge issued an enjoining order until 8 April, preventing Lanka Sathosa from receiving the money.
President’s Counsel Farman Cassim, Attorneys-at-Law Charaka Jayaratne and Mithun Imbulamure instructed by Vidanapathirana Associates appeared on behalf of Softwatch Infosys.
