Home / Front Page/ Six enjoining orders issued against Seylan Bank and trust companies

Six enjoining orders issued against Seylan Bank and trust companies


Comments / {{hitsCtrl.values.hits}} Views / Monday, 24 October 2016 00:01

Facebook

Nine former employees of Seylan Bank Plc last week filed six separate cases in the District Court of Colombo before District Judge M.Y. Irshadeen against Seylan Bank Plc and six other trust companies, namely ESOTS Ltd, SESOT Ltd, SEYSHOP Ltd, SOTSE Ltd, SEYFEST Ltd, SEYFEST Ltd and SEYSHOP Ltd.

The former employees in the six cases were represented by Counsel Nishan Premathiratne with Pravi Karunaratne, who was instructed by Sanjay Fonseka.



The former Seylan Bank employees, through their complaints, took up the position that the six trusts were created by Seylan Bank in order to provide an additional benefit to the employees of  Seylan Bank to be given to the employees at the point of cessation of employment from Seylan Bank. The six trust companies jointly own over 12 million shares of Seylan Bank, which is presently valued at over Rs. 1.1 billion. 

The former employees submitted that this additional benefit, which was to be given to these employees, was to be separate from gratuity and other payments. The former employees submitted to Court that Seylan Bank and the trust companies had neither paid the respective sums nor allocated the shares of Seylan Bank to the beneficiaries of the trust, who were the bank’s employees.

The former employees further told Court that through a letter dated 22 June 2016 Seylan Bank Plc had informed the Colombo Stock Exchange that the subject trust companies do not hold these shares for the benefit of the employees. The former employees also handed the Court several annual reports of Seylan Bank, in which the bank had categorically stated that the Employee Share Owning Trusts were being held for the benefit of the employees which were in contradiction of this letter. 

Citing these reasons the former employees of the bank submitted through Counsel that there was an imminent risk that these shares of these trusts would be alienated by Seylan Bank in violation of the trust deeds.

Pursuant to the submissions made by Premathiratne on behalf of the former employees, the District Judge granted six enjoining orders in respect of the six trusts with interim injunction notices restraining Seylan Bank Plc and six trust companies from disposing the Seylan bank shares other than for the specific purpose of paying the beneficiaries who are none other than the employees.  

These enjoining orders will be in effect until 1 November 2016, when Seylan Bank and the six trust companies will be required to appear in Court.

 

 


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Tawheed is not a misdeed but dirtied by the extreme

Saturday, 25 May 2019

A singular and specific victim of the whole macabre incident of the 21 April Easter Sunday bombings by terrorists in Sri Lanka from a standpoint of Muslims was the maligning, tarnishing and distorting of a term indispensable, necessitous and fundamen


17 things ‘Avengers: Endgame’ teaches us about the state of our superheroes

Friday, 24 May 2019

Art imitates life. Even movies do. Maybe especially so. In these lean times, there’s nothing like a little laughter to stop the press, stem the blood pressure, ease that stress in life. So here goes. Trust you’ll take these tongue-in-cheek. Or pe


Sri Lanka needs urgent surgery!

Friday, 24 May 2019

Sri Lanka was on the slippery slope of a serious crisis, heading for a great disaster of the State, even before the outbreak of Easter Sunday attacks. Now, in the aftermath of the ruthless Easter Sunday attacks, the country’s crisis has become exac


Mangala, Monks, Mangala Sutta and Marx

Friday, 24 May 2019

In the Buddhist belief system, ‘Mangala’ means a ‘blessing’. In the abstract ‘Mangala’ denotes an ‘auspicious sign’. In the ‘Mangala Sutta’, the Buddha has enumerated 38 of the highest blessings that we must or should be guided b


Columnists More