Fresh legal battle between Agalawatte Plantations and Mackwoods Tea

In the latest chapter of the continuing Mackwoods saga, two cases filed on behalf of Mackwoods Tea Ltd. and Taprospa Resorts Ltd. (a subsidiary of Mackwoods) against Agalawatte Plantations PLC were taken up on 14 December in the District Court of Nuwara Eliya.

Prior to this, in these cases, Mackwoods Tea and Taprospa Resorts obtained Enjoining Orders in respect of two primary properties given on sublease by Agalawatte Plantations to the Plaintiffs, namely the Labookele Tea Centre and the Labookele Villa. The said Enjoining Orders had been obtained by Mackwoods and Taprospa on the basis that there was a danger of Agalawatte Plantations interfering with their possession in respect of the subject properties.

When the matter was taken up on 14December, the Counsel appearing on behalf of Agalawatte Plantations objected to the extension of the said enjoining orders on the basis that Agalawatte Plantations had been in possession and continues to be in possession of the subject properties before the Enjoining Orders had been granted by the Nuwara Eliya District Court. Agalawatte Plantations submitted to Court that the subject properties were handed over voluntarily and peacefully by the management of the Plaintiffs.

Counsel for Mackwoods and Taprospa making submissions submitted however that Agalawatte Plantations was in violation of the Enjoining Orders granted by Court and proceeded to commence contempt proceedings before the District Court.

However, this application was vehemently objected to by Counsel appearing on behalf of Agalawatte Plantations, reiterating that Agalawatte Plantations had obtained possession prior to the Enjoining Orders being granted by Court and served on the registered office of Agalawatte Plantations on 9December.In this background it was submitted that the question of contempt of court could not arise.

Upon hearing the submissions of both parties the learned Acting District Court Judge directed that all matters be presented before the permanent Judge of the District Court of Nuwara Eliya learned Judge Nilimini Ferdinandes and re-fixed the two cases in respect of the two properties for 24January 2017.

This dispute arises in the backdrop of the several disputes in the Mackwoods saga. Mackwoods Group of Companies is primarily owned by the Nonis family, including a primary stake held by former Sri Lankan High Commissioner to the United Kingdom Chris Nonis. 

Several disputes between shareholders of the Mackwoods group were seen this year which have led to the institution of several cases before the Commercial High Court of Colombo. Thereafter, in July, Mackwoods sold one of its primary assets, which is a stake in Agalawatte Plantations comprising of 60.8% of the company’s shares, for a sum of Rs. 304 million to the Browns Group. The Labookele Tea Centre and the Labookele Villa were properties subleased by Agalawatte PLC to the Mackwoods Group.

Agalawatte Plantations was represented the legal team headed by Counsel Nishan Premathiratne with Nadun Wijayasriwardena and Yasith Hirimburegama on the instructions of Nirma Hettiarachchi. Mackwoods was represented by the legal team headed by Counsel Upul Jayasooriya with I. Kannangaram and Sandamal Rajapakshe on the instructions of Kalum Kumarasinghe.