Wednesday Nov 06, 2024
FT
Wednesday Nov 06, 2024
Monday, 19 February 2024 03:06 - - {{hitsCtrl.values.hits}}
In a new turn of events, Asia Capital has gone to court to seek redress over the monies owed by the Belluna Co. Ltd. of Japan by Galle Heritage Lanka Ltd., Marine Drive Hotels Ltd., and Miriandhoo Hotels Ltd.
“There is a considerable debt outstanding for the monies due by Belluna Co Japan for professional services rendered two and a half years ago,” Asia Capital Managing Director Raju Radha said.
However, concerns have been raised as Belluna Co Japan appears to be stalling in finalising the settlement, casting a shadow over its relationship with Asia Capital and raising questions about its financial integrity.
An amount of $ 500,000 is due for professional services rendered through four hotel projects that have been completed and handed over in time.
“The delay in settling the dues by Belluna Japan is unacceptable and has tarnished the reputation of Asia Capital,” Radha said.
“We expect our clients to uphold their financial commitments with the utmost diligence and transparency. As we are no longer partners, Belluna Co Japan has to settle a penalty of $ 3 million imposed by the Inland Revenue Department for non-capitalisation of the investment brought in. This has resulted in decreasing the value of the shares which otherwise should be valued at around $ 10 million.” Radha said.
“We are deeply disappointed by Belluna Co Japan’s failure to honour the terms of the agreement and settle the outstanding dues in time. We urge Belluna Co Japan to prioritise the settlement process and uphold the principles of financial integrity and accountability,” added Radha.
The matter appears to have been further aggravated by the reluctance on the part of the Belluna Co companies to come to a settlement. Asia Capital has in writing requested to Galle Heritage Lanka Ltd., Marine Drive Hotels Ltd., and Miriandhoo Hotels Ltd., individually that they accept or appoint an arbitrator.
“We have duly served notice of disputes that have arisen in terms of the MOUs about the Galle Heritage Hotel Project, Marine Drive Hotels Ltd., and Miriandhoo Hotels Ltd. This has led to the nomination of Dinal Philips PC as the Arbitrator and requested Belluna Co Japan to either consent to the said nomination of Dinal Philips PC as the sole arbitrator or to take steps to appoint a panel of three arbitrators. In response they had nominated Maithri Wickremesinghe as arbitrator,” Radha added.
