A petition to wind up Informatics International Lanka Ltd. has been filed with the Commercial High Court Colombo, by multinational software company IFS AB headquartered in Sweden.

The winding-up action was instituted by IFS against International Lanka Ltd as the latter failed to satisfy a judgment entered in Court in favour of IFS, in a previously hard-fought legal battle between IFS and Informatics International Lanka Ltd. Notice of winding-up was previously published in the newspapers and Government gazette as directed by the Commercial High Court notifying the public of the winding-up proceedings.

The two entities, IFS and Informatics International Lanka Ltd, came together around 1997 and entered into a Shareholders’ Agreement to form a joint venture company however, several years later disputes arose between the two.

After preferring the disputes to arbitration held in Singapore, an arbitral award was given in favour of IFS in June 2014. The said arbitral award was successfully enforced in Sri Lanka around September 2017, upon an application filed by IFS, according to which Informatics International Lanka Ltd was required to pay a sum exceeding Rs. 140 million to IFS.

As pleaded in the Winding-up Petition, all other related legal proceedings and appeals instituted by Informatics International Lanka Ltd in the interim period have been dismissed in favour of IFS. It is further pleaded by IFS that these legal actions were a mere tactical approach adopted by Informatics International Lanka Ltd to avoid and continuously delay the payments due to IFS on the arbitral award.

IFS has now moved Court to wind-up Informatics International Lanka Ltd as the former has not been able to execute writ against Informatics International Lanka Ltd on the judgment enforcing the arbitral award. The Winding-up Petition further states that there were no officers or representatives of Informatics International Lanka Ltd at their registered office, that there was no immovable property or any other property which could be seen at the said location to seize and all buildings at the registered office of Informatics International Lanka Ltd were locked.

For these reasons, the Fiscal of the Commercial High Court has not been able to execute the writ as directed by the Court. The Petition further states that Informatics International Lanka Ltd has not replied to the written demand sent by IFS, as at commencement of the winding-up proceedings.

The Winding-up Petition filed under the Companies Act is based on the above grounds of failure to pay a sum exceeding Rs. 140 million owed to IFS as demanded as well as the failure to execute writ through the Fiscal of the Commercial High Court against Informatics International Lanka Ltd.

Although the inquiry was originally fixed on 7 October, the inquiry had not been taken up as the Fiscal could not serve the notice of winding-up on Informatics International Lanka Ltd at the registered office due to the absence of a responsible officer of the company. Thereafter, upon an application made by the Petitioner, Court directed to serve notice on the three Directors of Informatics, Janakie Wikremasinghe, Hasith Wikremasinghe and Hiran Wikremasinghe, and rescheduled the inquiry on 6 December.

President’s Counsel Avindra Rodrigo with Rozali Fernando instructed by FJ&G de Saram appeared for the Petitioner, IFS, and supported the winding-up Petition before Justice M.A.R. Marikar.