Commercial High court issues enjoining orders on RDA
View(s):Canowin Hotels & Spas (Pvt) Ltd recently instituted court action against the Road Development Authority (RDA) seeking damages of Rs. 2 billion and interim relief to restrain the RDA from “unlawfully terminating the agreements entered in respect of the Rest Area on the Southern Express Highway” which is patronised by the public.
Commercial High Court Judge M. Ahsan R. Marikar, hearing the case on September 11, issued an enjoining order restraining the defendant RDA from acting on the notices of termination in respect of Service Area and Petrol Sheds.
When this matter was called on September 25, the RDA filed proxy and further hearing was fixed for November 13.
The plaintiff was represented by President’s Counsel Dr. Harsha Cabral, Nishan Premathiratne, Janith Fernando, appearing on the instructions of Messrs. Julius & Creasy, Attorneys at Law.
In its plaint, Canowin Hotels & Spas says that it is a fully owned subsidiary of Sri Lanka Insurance Corporation and was incorporated exclusively for the purposes of developing and managing the Rest Area and the Petrol Sheds termed ‘Canowin Arcade’ which is on the Southern Expressway.
The plaintiff said that the RDA had leased out a total extent of 3.5732 hectares of land through three separate Lease Agreements for period of 99 years and 30 years to Canowin Hotels & Spas.
Canowin Hotels & Spas alleged that the RDA on or around February 6 without any basis wrote to Canowin Hotels & Spas and said to take steps in respect of an alleged stray dog nuisance without any time period, alleging that Canowin Hotels & Spas is violating the agreement entered between the Canowin Hotels & Spas and the RDA.
Thereafter, within a span of two days Canowin Hotels & Spas received a further letter giving notice of termination without giving any time to rectify.
Canowin Hotels & Spas had attempted to amicably discuss with the RDA, owing to the defendant continuously changing its positions, but all discussions failed.