HNB clarifies news item on attempted deal between Subasinghe and HNB over Ceylinco Insurance
Wednesday, 4 March 2015 00:13
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With reference to the news item titled ‘Commercial High Court takes up case on attempted deal between Subasinghe and HNB over Ceylinco Insurance,’ HNB yesterday issued the following clarification:
The newspaper article and the contents thereof have been misquoted and do not reflect the correct position.
Senerath Bandula Abeysekera, the Petitioner, had instituted a derivative action on 28 August 2014 and sought an interim relief restraining HNB and its Board of Directors from executing a Memorandum of Understanding.
The application for interim relief was supported and HNB vehemently objected to any interim relief being granted on the basis that the matters stated in the Petition are false and factually incorrect and that there is no basis for a derivative action to be filed.
It is evident that S.B. Abeysekera is acting in collusion with certain interested groups to the detriment of HNB, with a view to hampering the growth and development of HNB, which is one of the leading commercial banks in Sri Lanka.
The Commercial High Court of Colombo having heard submissions in the matter made Order on 4 September 2014 and refused to issue an Interim Order.
S.B. Abeysekera or the Petitioner did not appeal against the said Order thus accepting the position of the bank that S.B. Abeysekera has no status and that there was no basis for him to file an action.
HNB in the normal course of its business looked into the probable business opportunity and recommendations made and thereafter, its Board of Directors decided not to proceed with such proposals.
The news item which appeared on 3 March, on the action filed on 28 August, is out of context and does not contain the correct and true position. This case came up on 27 February for the Petitioner to withdraw the action. However, the Petitioner sought further time to consider whether the matter could be withdrawn.
S.B. Abeysekera has been terminated for misconduct while in employment in HNB and his application for reinstatement had been rejected by the Labour Tribunal.
