CA probes into Perpetual Treasuries pedigree

• Directs counsel to furnish structural chart setting out formation of company 

 By S. S. Selvanayagam

The Court of Appeal yesterday posed queries probing into the pedigree of the structure and formation of Perpetual Group of Companies and directed the Counsel for the Perpetual Asset Management (Pvt) Ltd and Perpetual Capital Holdings (Pvt) Ltd to furnish the pedigree chart setting out the formation of the Perpetual Treasuries from the inception.

 The matter came up before the Bench comprising Justices Vijith K. Malalgoda (President/CA) and S. Thuraira.

Counsel Nihal Fernando informed the Court that he had made the application to the Registrar of Companies to obtain the certified copies of the entire Perpetual Group of Companies and that, as he could not obtain the same up to date, he pleaded for another date to tender the same.

The Court granted permission to tender them and fixed the matter to be mentioned on 30 March to re-fix the date for further support.

 When the case came up before the Court, Justice S. Thuraira posed several questions probing into the pedigree of the structure and formation of the Perpetual Group of Companies.

 Perptual Treasuries (Pvt) Ltd, a primary dealer specialised in the intermediary government security market, filed a writ petition before the Court of Appeal seeking an order quashing the directions of the Monetary Board imposing restrictions on it.

In the absence of no formal violation of procedure by the company in the purported bond scandal, it claimed, the true intentions behind the issuing of the said directions are mala fide and ultra vires of the regulatory powers of the respondents.

The impugned directions, it said, are issued for extraneous reasons in order to satisfy the media and political agendas.

If the said impugned directions are in force, Perpetual Group of Companies will suffer grave and irremediable financial loss and will be driven to bankruptcy, it added.

Petitioners Perpetual Treasuries (Pvt) Ltd, Perpetual Asset Management (Pvt) Ltd and Perpetual Capital Holdings (Pvt) Ltd cited the Central Bank, the Monetary Board and 11 others as respondents.

 Instructed by G. G. Arulpragasam, President’s Counsel S. A. Parathalingam with Niskhan Parathalingam and Niranjan Arulpragasam appeared for Perpetual Treasuries (Pvt) Ltd, while Nihal Fernando PC with Romali Tudawe and Maduka Perera appeared for Perpetual Asset Management (Pvt) Ltd and Perpetual Capital Holdings (Pvt) Ltd. Faisz Musthapha PC with Faiza Markar instructed by Gowry Shangary. Thavarasha appeared for the Central Bank. Deputy Solicitor General Milinda Gunatilake appeared for Monetary Board and the Attorney General.