DC liquidates plaintiff’s deposit made in court to defendants on equal shares

By T. Farook Thajudeen

In a special civil suit filed in the Colombo District Court by four directors of a company who had obtained an enjoining  by depositing Rs 50,000 as security against two defendants including a private bank was forfeited and ordered to pay the deposited money to the two the defendants on equal shares  as liquidated damages.

Colombo District Judge Sandun Vithana made this order, observing that the plaintiffs had no locus standi (a person’s right to take action by a court) to file this action against the defendants. The judge further observed that the defendants had misrepresented facts to the court.

High Octane Fitness Centre Ltd., of Dutugemunu Street Pamankada had obtained an enjoining order against the Defendants C.M.U. Weerawardena of Kassapa Road Colombo 5 and Sampath Bank claiming that the defendant had no lawful right to transact on the cheques issued by the directors of the company Darin Weerasinghe, Nilika Weerasinghe, Bandula Weerasinge and Asanthi Weerasinghe of High Octane Fitness Centre to the first defendant and to enjoin the first defendant and Sampath Bank as the second defendant and pleaded to enjoin them from transacting on the cheques issued by the company.

At the first instance the court enjoined the two defendants and the plaintiff company was ordered to deposit a sum of Rs 50,000 in court to issue the enjoining order.

However subsequent to filing objections by the defendants it was observed that prima facie the judge should satisfy that the plaintiff actually has a legally recognised rights and not merely rights claimed by the plaintiff.

The judge underscored the fact that the court should not decide on the rights of the parties and to bear out whether the plaintiff has a ‘locus standi’ to file the case.

Being observing this the Judge overruled to issue the interim order and re called the enjoin order issued on the defendants.

Judge Sandun Vithana ordered the release of Rs. 50, 000 deposited in court by the plaintiff on equal shares to the first and second defendants as liquidated damages.