HC vacates Interim Order against UK directors of Global Grange Lanka

By S.S. Selvanayagam

Colombo High Court vacated the Interim Order against two UK Directors of Global Grange Lanka Ltd. restraining them from acting.

High Court Judge Ruwan Fernando vacated the order without cost.

UK based Petitioners Raj Singh Matharu and Harpal Singh Matharu who are Chairman and Secretary respectively of Global Grange Hotels in the UK have been sought to be removed by other Directors whereas the petitioners with 4th Respondent Tejinderpal Singh Matharu are the majority shareholders and Directors Grange Group which own and operate a chain of renowned hotels across London. 

Petitioners who are also Directors of Global Grange Lanka Ltd. cited, Global Grange Lanka, Kalyanawansa Hettiarachchi and his wife Deepika Madhubashini, Tejinderpal Singh Matharu, Priya Kaur Matharu, and Tara Kaur Matharu and the Registrar of Companies as Respondents.

Priya Kaur Matharu and Tara Kaur Matharu are daughters of Tejinderpal Singh Matharu.

Petitioners initiated the legal action seeking restraining orders against other Directors of Global Grange Lanka. The Court on 16.05.2018, had issued interim order restraining said two directors from functioning.

Kalyanawansa Hettiarachchi filed an application praying for varying and/or revoking or suspending the said Interim Order objecting the maintainability of the instant petition on basis that the petitioners have no locus standi and their application is misconceived since the acts complained of have taken place prior to the institution of this application and that the petitioners are not entitled to the Interim Order.

The Court held that an application for a restraining order can only be made by the company or shareholder or a director of the Company and that it is not in dispute that the application is not made by the Company.

Kuwera de Zoyza PC appeared for the Petitioners. Instructed by G.G. Arulpragasam, Romesh de Silva PC and M.U.M. Ali Sabry PC appeared for 2nd and 3rd Respondents respectively.