Commercial High Court orders winding-up of Orient Garments

Tuesday, 18 October 2016 00:06 - - {{hitsCtrl.values.hits}}

Petitioner highlights inability to pay debts, provisional liquidator appointed by court

The Commercial High Court yesterday ordered the compulsory winding-up of Orient Garments Plc following the inability of the company to repay its debts and appointed a provisional liquidator to take over its business.

Director cum Shareholder Dr. T. Senthilverl, the petitioner of this case, filed the application to wind up the company on or around 20 February 2015 on the basis that other Directors of the company were carrying on business when the company was unable to pay its debts on time.

The then Board members of the company failed and neglected to wind-up the company, declaring to the Colombo Stock Exchange that the company was able to pay its debts as they fell due, contrary to the position taken up by the petitioner at that time.

Given this background, the petitioner asked court to wind up the company and was successful in having a provisional liquidator appointed by court to take over the business undertakings of the company.

The petitioner was successful in his efforts to have Orient Garments Plc, a publicly quoted company listed on the Colombo Stock Exchange, wound-up by Court.

Attorney-at-Law Avindra Rodrigo, with Shanaka Gunasekara instructed by F. J. & G De Saram, appeared for the petitioner.