Financial Times

Appeal Court refuses interim relief to Janashakthi
The Court of Appeal has turned down a request from Janashakthi Ltd for interim relief in a case involving the purchase of shares in the company by the National Development Bank (NDB).

Janashakthi had earlier filed action in the Appeal Court seeking to appeal against a District Court verdict refusing Janashakthi Ltd the right to restrain NDB Ltd from preventing Janashakthi from purchasing further shares in the bank.

Janashakthi Ltd who neglected the notice served on them by the Secretary of the National Development Bank, requiring compliance with the laws and rules regulating the composition of the Bank’s shareholding, and purchased shares in excess of the limits prescribed by law, continue to be restrained by the District Court of Colombo, from interfering with and obstructing the process implemented by the National Development Bank to ensure that its shares are held subject to the maximum limits specified for licensed commercial banks.
Janashakthi maintains that they hold shares of NDB independently and not in concert with certain other companies within the Janashakthi Group also holding shares in the NDB, and that therefore they do not hold shares in excess of the limitations imposed by law on shareholders of the bank and should be allowed to purchase further shares in the bank.

The case was put off for December 2. President’s Counsel K. Kanag-Isvaran, with Attorneys Avindra Rodrigo and Sudesh Peter, instructed by M/s F. J. & G. de Saram appeared for National Development Bank Limited.

President’s Counsel Romesh de Silva, with Attorneys Nagalingam R. Sivendran and Eraj de Silva, instructed by M/s Murugesu & Neelakandan appeared for Janashakthi Limited.

Back to Business