CA dismisses with cost writ petition of Perpetual Treasuries against CB

By S.S. Selvanayagam

The Court of Appeal yesterday dismissed with cost the writ petition filed by the Perpetual Treasuries Group of Companies challenging the directives of the Central Bank imposing restrictions.

The bench comprised Justices Rohini Walgama (CA President) and S. Thurairaja. Senior Counsel for Perpetual Treasuries (Pvt) Ltd S.A. Parathalingam PC told court that the directives expired on 31 March and fresh directives have been issued by the Central Bank and the said directives do not cover all the subject matter.

He moved to withdraw the petition with liberty to file a fresh application.Deputy Solicitor General Milinda Gunatilake, appearing for the Monetary Board and the Attorney General, objected to the withdrawal. 

He submitted that no directives had been issued and there was no document before the Court to establish it.

He said the existing directives had been suspended for two months and maintained that the first petitioner company, Perpetual Treasuries (Pvt) Ltd, did not exist and the second and third petitioners were holdings companies of the first petitioner.

He maintained that the counsel for the petitioners have no standing before the Court and contended in the above legal background they had no right to withdraw their writ petition. He insisted that a withdrawal should not be allowed, pleading that the petition should be dismissed because the first petitioner was a non-existent company.

Counsel Parathalingam PC countered that the original company, Perpetual Treasuries (Pvt) Ltd, changed its name to Perpetual Treasuries Ltd. in 2013 and maintained that it was merely a change of name.

He said he had never heard of a submission of this nature and that it was ridiculous for the Counsel for the Attorney General to deny a withdrawal.

He underlined that the petition could be dismissed after a finding and there must be a reason for it.

Parathalingam on 30 March submitted the directives issued by the Central Bank imposing restrictions on Perpetual Treasuries Ltd. was due to expire on 31 March and informed Court it was the subject of the application.

He had stated that the petitioners were before the Court seeking to quash the directives issued by the Central Bank on 7 November on the basis that the directives are disproportionate, irrational, arbitrary and violative of natural justice.

 He had also stated that as the directives expire on 31 March, he will reserve his right to take appropriate steps if fresh directives are issued.

He moved for time to notify the Court of what steps he will take in regard to the present application.

Deputy Solicitor General Gunatilake informed Court he will reserve his right to object depending on the steps taken by the petitioners’ counsel.

Perpetual Treasuries (Pvt) Ltd, a primary dealer specialised in the intermediary government security market, filed a writ petition seeking an order quashing the directions of the Monetary Board imposing restrictions on it.

It lamented that in the absence of no formal violation of procedure by it in the purported bond scandal, the true intentions behind the issuing of the directions are mala fide and ultra vires of the regulatory powers of the respondents.

It bemoaned that the directives are issued for extraneous reasons in order to satisfy the media and political agendas.

It stated that if the directives were enforce, the Perpetual Group of Companies would suffer grave and irremediable financial loss and be driven to bankruptcy.

The petitioners Perpetual Treasuries (Pvt) Ltd, Perpetual Asset Management (Pvt) Ltd. and Perpetual Capital Holdings (Pvt) Ltd. cited the Central Bank, Monetary Board and 11 others as respondents.

Instructed by G.G. Arulpragasam, President’s Counsel S.A. Parathalingam with Niskhan Parathalingam and Niranjan Arulpragasam appeared for Perpetual Treasuries (Pvt) Ltd. while instructed by G.G. Arulpragasam, Nihal Fernando PC with Romali Tudawe and Maduka Perera appeared for Perpetual Asset Management (Pvt) Ltd. and Perpetual Capital Holdings (Pvt) Ltd. Faisz Musthapha PC with Faiza Markar instructed by Gowry Shangary Thavarasha appeared for the Central Bank.