Commercial High Court suspends Interim Orders against Directors of Cooplife Insurance

Wednesday, 3 May 2023 00:30 - - {{hitsCtrl.values.hits}}

The Commercial High Court, on Friday 28 April 2023, suspended the Interim Orders which had been issued against K. Jayantha Sesiri, K.R. Wasantha Ranasinghe, D.L. Samarawickrama and R. Sooriyaarachchi, who were alleged to have been removed as Directors of Cooplife Insurance Company Ltd, a 99% owned subsidiary of Cooperative Insurance Company.

These Interim Orders were initially granted on an application preferred ex-parte by Cooperative Insurance Company under the Companies Act No. 7 of 2007, naming Cooplife Insurance Company Ltd. and its Directors as Respondents, on the basis that certain Directors were continuing to engage and discharge duties as Directors pursuant them being removed.

However, on or around the 31 March 2023, a further application was preferred by a majority of Directors of Cooperative Insurance Company on the basis that there was no authority or power given to Cooperative Insurance Company to institute litigation in the first place and the fact that Cooperative Insurance Company had further preferred a subsequent board resolution to withdraw the case and in any event to suspend any Interim Orders through the proxy filed by Gamindu Karunasena, Attorney-at-Law. This application to suspend Interim Orders was made on the basis that several crucial matters had been grossly suppressed to Court by the parties to the initial application, especially in respect of Interim Orders granted in case bearing No.: CHC/37/2022/CO in the same Commercial High Court, in which the composition of the Board of Directors of Cooperative Insurance Company had to be a certain composition.

Before the Learned Commercial High Court Judge Hon. Sumith Perera, extensive oral submissions were made and pursuant to extensive written submissions, the Commercial High Court suspended the Interim Orders which had been granted against K. Jayantha Sesiri, K.R. Wasantha Ranasinghe, D.L. Samarawickrama and R. Sooriyaarachchi, which had prevented them from acting and carrying out their duties in the capacity of Directors in Cooplife Insurance Company Ltd.

Several disputes are currently ongoing among the Directors of Cooperative Insurance Company in proceedings filed in the Commercial High Court and as well as the Court of Appeal where Writs have been sought against the Insurance Regulatory Commission of Sri Lanka, the Regulator of the insurance industry in Sri Lanka.

The parties to the original application seeking for interim relief were represented in Court by Ruwantha Cooray, Attorney-at-Law instructed by Thilini Gamage, Attorney-at-Law. The parties seeking to withdraw the application and / or suspend any Interim Orders appearing through the proxy of Gamindu Karunasena, Attorney-at-Law were represented in Court by Nishan Premathiratne, Attorney-at-Law with Sidath Gajanayaka, Attorney-at-Law.