Commercial High Court issues Interim Order preventing Directors of Walkers Piling from liquidating assets

Friday, 26 January 2024 00:24 - - {{hitsCtrl.values.hits}}

The Commercial High Court of Colombo on an application made by Tokyo Supermix Ltd., issued an Interim Order against the Directors of Walkers Piling Ltd., from taking any steps to sell and/or dispose and/or to alienate and/or create any encumbrance on any of the property belonging to Walkers Piling.

Tokyo Supermix Ltd., a subsidiary of Tokyo Cement PLC, had filed a Winding Up Petition before the Commercial High Court in which the Petitioner had alleged that Walkers Piling, a subsidiary of MTD Walkers PLC had not honoured a Statutory Demand on a debt presented by Tokyo Supermix.

Thereafter, the matter had come up several times before the Commercial High Court where other creditors joined in to support the winding up Petition against Walkers Piling. The Commercial High Court had fixed the matter for Order for winding up for 2 November 2023. Whilst the matter was pending before Court for the winding up Order, Tokyo Supermix preferred an application against the Directors of Walkers Piling on the basis that the Directors of Walkers Piling were in the process of liquidating the assets of the company.

Tokyo Supermix set out in its Petition that the assets of Walkers Piling inter alia include assets located at various locations, construction yards, and construction sites. The Petitioner had also supported the allegation with an Affidavit given by a former employee of the company. Tokyo Supermix also through the Petition to Court had set out that the assets of Walkers Piling are valued at over Rs. 1 billion and such assets are located at various sites around the country.

The Petitioner set out in the Petition that the Petitioner sent its agents to the Moragahakanda construction site where Walkers Piling had stationed various high-priced construction equipment and machinery and the agents were able to observe inter alia that a number of those vehicles were being prepared to be transported and/or repaired, the vehicles parked at the site had markings and inscriptions bearing the name of Walkers Piling, and that there were clear evidence to show that certain vehicles were being prepared for transport.

The Petitioner also set out in the Petition that, after finding out about the recent arrangements taking place with regard to the assets of the company sought to be wound up, the Petitioner submitted through the Petition that creditors of Walkers Piling would be severely prejudiced if the assets of Walkers Pilling Ltd., are liquidated either directly or indirectly.

High Court Judge Pradeep Hettiarachchi, having considered the submissions made on behalf of the Petitioner, granted an Interim Order preventing Walkers Piling Ltd., the two Directors of the company namely Duminda Kumara Pathirana and Nihal Caldera who are named as Respondents in the matter from taking any steps to sell and/or dispose and/or alienate and/or create any encumbrance on the assets of the company.

The matter has been fixed for 31 January for Walkers Piling Ltd., to present a settlement plan to be considered finally.

The Petitioner Tokyo Supermix Ltd., was represented in Court by Attorney-at-Law Nishan Sydney Premathiratne with Attorney-at-Law Krishan Fernandopulle appearing on the instructions of Attorney-at-Law Gamindu Karunasena.