Lanka Coal obtains enjoining order against Liberty Commodities (UK)

By S.S.Selvanayagam

The Commercial High Court of Colombo extended the Enjoining Order against Liberty Commodities Ltd of UK.

The litigation filed by the Lanka Coal Company against the Liberty Commodities Ltd came up before High Court Judge E.R. Amarasekere.

The Lanka Coal Company, a fully owned government concern and the monopoly holder to import coal for the use in electricity generation obtained an Enjoining Order against inter alia, Liberty Commodities of UK from encashing the Letters of Credit referred to in the Plaint alleging inter alia, that a fraud had been perpetuated by Liberty Commodities Ltd.

The complaint of the Plaintiff Company Lanka Coal was that the 1st Defendant , Liberty Commodities wrongfully discounted and/or illegally added bonuses to the amount due to itself after supplying the coal whilst producing the commercial invoices to the 3rd Defendant Bank ING Belgium Geneva Branch to be paid through the 2nd Defendant Peoples’ Bank.

The Plaintiff Company Lanka Coal alleges the fraud already incurred at a sum of more than $ 2 million and also apprehends that the 1st Defendant will fraudulently discount and/or add bonuses whilst en-cashing future letters of credit as stated in the Plaint.

The enjoining order was supported on the 7th of April 2016 and on the 4th of May 2016 the 1st Defendant objected to the extension of the enjoining order but the Commercial High Court extended the enjoining order until the 18th of June and ordered parties to file written submissions on the interim injunction.

The enjoining order for the Plaintiff was supported by Farman J Cassim with Charaka Jayaratne and Damithri Welikala instructed by Niclo Associates. Lasantha Hettiarachchi appeared for the 1st Defendant. Waruna Senadira appeared for the 2nd Defendant. There was no appearance recorded for ING Bank Belgium which is the 3rd Defendant.