Business Times

Hedging Cases: Deutsche Bank claim in international arbitration in July

When the controversial oil hedging cases filed by public interest activist, Nihal Sri Ameresekere, came up before the Supreme Court on Monday, Attorney General, Mohan Peiris PC, moved for a short date, submitting to court that he needs time to examine voluminous documents he had received from the parties.

Faiz Musthapha PC, appearing for Deutsche Bank submitted to court, that his client's arbitration before the International Centre for Settlement of Investment Disputes (ICSID) is being heard from July 26 to 30, 2010, and moved that the Supreme Court cases be fixed for a date thereafter. But with the Attorney General and Mr Ameresekere opposing, the cases were re-fixed for support, after the court vacation, on May 11.

Mr Musthapha submitted to court that in view of Deutsche Bank's application before ICSID, the Supreme Court had no jurisdiction to hear the matter, a view that was refuted by Mr Ameresekere who said there is no such ouster of the jurisdiction of the Supreme Court.

The Ceylon Petroleum Corporation in its statement filed in court through the Attorney General had stated that these transactions are illegal, ultra-vires, and/or unauthorized, and that the banks have misrepresented the true nature of these transactions, and that these transactions are null and void and/or unenforceable against the Corporation.

In addition to arbitration proceedings by Deutsche Bank, Citibank has initiated arbitration proceedings in the London Court of Arbitration and Standard Chartered Bank has instituted legal action in the High Court of United Kingdom. The Corporation has also entered into similar transactions with People’s Bank and Commercial Bank of Ceylon.

The Attorney General is defending these foreign litigations. Petitioner Ameresekere's stance is that these are betting / wagering deals, which are illegal contracts and unlawful under Sri Lankan and English Law, and are not enforceable. The CPC owes billions of rupees to a group of foreign and local banks on oil hedging deals.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
CSE will remain small market
SLIC gets Central Bank sanction to buy over 10% of NDB
CB/EPF stakes in banks: Conflict of interests?
Top banks, Indian firm aim for broking licenses
No passengers to Jaffna? Airlines withdraw
Finance firms may not be attractive in the long –term
Change at the top
Comment - New strategy to attract investments
Feature - Longevity risk: Death of retirement?
Feature - Additional income from rubber plantations and new carbon negative concept
Singer rebrands to ‘Singer Homes’ from ‘Modern Homes’
Derivatives anideal product in post-war economy
Seylan Bank AGM held on Friday
5,000 kgs of tea withdrawn from domestic market last week
UNP puts its economic view online
Computer firm Ezy aims to raise Rs 100 mln by 2015 for its new racing segment
SL Convention Bureau promotion in the Far East
Hedging Cases: Deutsche Bank claim in international arbitration in July
Knowledge Conglomerate to launch ventures
DHL Keells positive on Sri Lankan growth
Credit Card helps eliminate risk in carrying cash
Globalisation led to 'knowledge economy' : Chief Justice
Solid response to NTB’s 2010 warrants (shares)
Sri Lankans have limited access to their own seas-industrialist
AMW Obtains IMI Accreditation – first in South East Asia
Taj Hotel group opens regional skills centre in Colombo
SLT ranked number one in Top 10 competition
HSBC cash for special clients thro’ Keells Super
Sri Lankan economy set to grow –Asian investors told
Fiscal deficit causes IMF to delay loan
Groundwork of pruning the cabinet gets underway
Bank of Ceylon to open 31 more branches in the North and East
Lumiére Residencies receives CMA certification
IFS signs US-government prime contractor Sabreliner
Eight Kurunegala poultry farmers receive assistance
Israel to 'enhance' economic ties with SL
Heritance Ahungalla organises Six-a-Side Beach Cricket Tournament
Dialog receives award for M-waste Management
Corporate climate responsibility - Case for a green economy
Former Malaysian PM Mahathir here in June for business event
Only 0.14% of SL GDP towards R&D, others 1.5%
Column - The office: Paperless and work on the move
New SKAL committee
Fitch affirms rating on Singer
Lanka Ceramic sales pick up after showroom upgrade
Global Finance picks Commercial Bank as Sri Lanka’s best for 12th year in a row
Oracle solutions for mid-sized Sri Lankan companies


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution