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The Supreme Court in a landmark order recently has upheld the legal arguments made on behalf of the Board of Investment of Sri Lanka and dismissed the Appeal in the Supreme Court filed by a local company.
The order, delivered by the Chief JusticeK. Sripavan together with Justice C. Ekanayake and D. Dep P.C, upheld the objections raised by the BOI.
Previously too the Civil Appellate Court of Colombo in a judgment by Justice Dehideniya and K.K.S.A.F. Perera had upheld the issue of the lack of jurisdiction raised on behalf of the Board of Investment of Sri Lanka and dismissed and rejected the plaint filed by the company, Sees Lanka Ltd. against the BOI.
Initially the company Sees Lanka instituted action in the District Court of Colombo in relation to the agreemententered into with the Board of Investment of Sri Lanka and making monetary claims for improvement of the lands and that the BOI had been unjustly enriched.
By this action the Plaintiff company had claimed a sum of $ 1,100,000 or its equivalent Sri Lankan Rs.124,300,000 and a further Rs. 59,000,000 against the BOI.
The Supreme Court refusing to set aside the previous order of the Civil Appellate Courtrejecting the Plaint accordingly dismissed the Appeal to the Supreme Court.
The Supreme Court order was in relation to the issue whether the company incorporated in Sri Lanka had the authority to instituted action in the Supreme Court of Sri Lanka based on the power of attorney given.
The Court referred to the fact that the company had registered as a duly incorporated company under the Companies Laws of Sri Lanka in its own Plaint.
The Court referred to the fact that the Defendant-RespondentBOI had originally objected to the jurisdiction of the District Court on the basis of the averments contained in the answer on the ground of the Arbitration Clause set out in the argument with then GCEC (BOI) together with the provisions of the Arbitration Act of Sri Lanka.
In the Appeal to the Supreme Court the question arose whether the company is properly represented as utilised with a power of attorney authorising for the institution of a leave to appeal application for the company which is incorporated in Sri Lanka.
The Court stated that the Supreme Court is the highest of the Superior Courts in the Republic and exercisescivil and criminal appellate jurisdiction within Sri Lanka in terms of the Constitution.Thus the Supreme Court has all-island jurisdiction in respect of civil appellate matters.
The Court also referred to the provisions of the Companies Act and who can be a recognised agent of a company.
Therefore the Court held that the company may be represented by a registered attorney in terms of the Civil Procedure Code and the appointment of such a registered attorney shall be in writing and signed by the client.Therefore it held that the Plaintiff Company is notproperly represented before the Supreme Court and accordingly the application for leave to appeal to the Supreme Court was dismissed.
M.E. Wickremasinghe PC with Rakitha Jayatunga appeared for the Plaintiff-Petitioner company.
Hiran de Alwis, Attorney-at-Law with Kalpa Virajith and Asitha Ranasinghe, appeared for the Respondent, the Board of Investment of Sri Lanka.