Business Times

New GK repayment plan blocked by depositor’s move

The Golden Key Credit Card Company Ltd (GK)’s repayment plan has been blocked by a petition filed by an aggrieved depositor requesting the Chief Justice to consider the hearing of the case by a 5-member Supreme Court bench, at a time where the modus operandi for the repayment to the depositors is beginning to take shape, lawyers of depositors said.

Earlier the Court gave its nod for the implementation of the plan to make payments to GK depositors who were deprived of their deposits. The 3-member bench headed by Justice Shirani Thilakawardane on June 29 while approving the payment plan which was crafted after several rounds of discussions between the Directors of the company and the majority of depositors, ordered that the progress of the plan be presented on September 29. Under this plan it was proposed to complete the payment of capital of the depositors within four years. It was mentioned that 30 % should be paid within the first year.

When the case was taken up for hearing on Thursday, depositors were informed by Court that a GK depositor M. J. Perera has filed a petition urging the Chief Justice to consider appointing a 5-judge to hear his petition objecting to the repayment plan whch he says is detrimental to the depositors. The Court then said the petitioner should support his claim for a higher bench at a hearing by a separate Supreme Court bench on October 13.

President of GK Depositors Society Anusha Emmert told the Business Times that the depositors are struggling to survive since the collapse of the company two years and nine months ago, as most of them have no fixed income after they lost their interest payments for their deposits.

Twenty-three depositors have died including three who committed suicide, she revealed. Depositors were eagerly waiting for the implementation of the payment plan approved by the Supreme Court and this new development of the GK case will delay the repayment process pushing depositors into further difficulty, Ms Emmert said. She said that she has convened a meeting of depositors next Thursday opposite the GK head office in Colombo to create awareness on the present situation.

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