Kandy High Court dismisses appeals by Mackwoods and subsidiary against Agalawatta Plantations; order

The Civil Appellate High Court of Kandy, by an order dated 4 May 2017, dismissed the two appeals filed by Mackwoods Teas Ltd. and sister company Taprospa Resorts Ltd. against Agalawatta Plantations Plc.

These appeals were made in the backdrop of Mackwoods and Taprospa initiating action against Agalawatta before the District Court of Nuwara Eliya on the basis that Agalawatta was interfering with the possession of the Labookele Tea Centre and the Labookele Villa which as per the cases were in possession of Mackwoods and Taprospa.

The appeals to the Kandy High Court were made by Mackwoods and Taprospa as a result of an order delivered by Nuwara Eliya District Court Judge Nilimini Ferdinandes on 24 January 2017. The order was a result of a position taken up by Mackwoods and Taprospa that Agalawatta, through its legal team, had not reserved its right to file an answer and on that basis Mackwoods and Taprospa had moved the District Court of Nuwara Eliya to fix the matter exparte.

The Judge of the Nuwara Eliya District Court, having considered the submissions made by the respective legal teams, did not hold with the position of Mackwoods and Taprospa and made an order to that effect on 24 January 2017.

The effect of the Nuwara Eliya District Court holding against Agalawatta Plantations would have been that Agalawatta would not have been heard or be able to defend itself in the cases filed in respect of the Labookele Tea Centre and the Labookele Villa.

The District Court judge’s order was thus appealed by Mackwoods and Taprospa, and when the appeal was heard in the Kandy High Court by judges Pradeep Hettiarachchi and Devika Abhayarathne on 8 March 2017, submissions were made by counsel Upul Jayasooriya for Mackwoods and Taprospa and in reply submissions were made by counsel Nishan Premathiratne, who appeared on behalf of Agalawatta Plantations.

The Kandy High Court judges, having heard the submissions and being possessed of the relevant facts and authorities, fixed the cases for order on whether the order of Nuwara Eliya District Court Judge Nilimini Ferdinandes dated 24 January 2017 should be inquired into, and hence whether the appeals of Mackwoods and Taprospa should be permitted. On 4 May 2017, having considered all matters, the judges of the Civil Appellate High Court of Kandy dismissed the appeals of Mackwoods and Taprospa with costs to be paid to Agalawatta and upheld the decision of Judge Ferdinandes. In both the District Court of Nuwara Eliya and the Civil Appellate High Court of Kandy, Agalawatte Plantations was represented by a legal team headed by Counsel Nishan Premathiratne with Nadun Wijayasriwardena and Yasith Hirimburegama on the instructions of K.P. Etipola. Mackwoods and Taprospa were represented by a legal team headed by Counsel Upul Jayasooriya with I. Kannangaram and Sandamal Rajapakshe on the instructions of Kalum Kumarasinghe. 

This dismissal comes in the backdrop of another case instituted by Chris Nonis and Lalith Fonseka in the District Court of Colombo being dismissed in the first instance on a jurisdictional objection raised by the counsel appearing on behalf of Agalawatta. The series of legal battles between the Mackwoods Group of Companies in which Chris Nonis is the Chairman and Agalawatte Plantations Plc commenced pursuant to a majority share sale of 60.8% of shares in Agalawatta Plantations Plc by Mackwoods to the Browns Group for Rs. 304 million. 

However, these shares have recently been acquired by the Damro Group of Companies.