Counsel for Perpetual Treasuries insists CB directives not effective beyond 31 March

By S.S. Selvanayagam

Senior Counsel for Perpetual Treasuries Ltd. S.A. Parathalingam yesterday notified the Court of Appeal that that the directives of the Central Bank imposing restrictions on the company expired on 31 March and were not effective beyond that date.

President’s Counsel Parathalingam submitted the petition mentioned today for the second and third petitioners to provide information pertaining to the formation of the petitioners’ companies.

 He stated that the directives issued by the Central Bank imposing restrictions on Perpetual Treasuries Ltd. were due to expire on 31 March and told the Court it was the subject of the application.

He stated that the petitioners were before the Court seeking to quash the directives issued by the Central Bank on 7 November on the basis that the directives were disproportionate, irrational, arbitrary and violative of natural justice.

He submitted that as the directives expired on 31 March, he would reserve his right to take appropriate steps if fresh directives were issued.

He moved for time to notify the court of what steps he would take in regard to the present application.

Deputy Solicitor General Milinda Gunatilake appeared for the Monetary Board and the Attorney General informed Court he would reserve his right to object depending on the steps taken by the petitioners’ counsel.

The bench, comprising Justices Vijith K. Malalgoda (President/CA) and S. Thurairaja, fixed the matter for 1 June for the petitioners’ counsels to notify the Court on what steps they would take with regard to the present application as the purported directives of the Central Bank expired on 31 March.

Perpetual Treasuries Ltd, a primary dealer specialising in the intermediary government security market, filed a Writ Petition seeking an order quashing the directions of the Monetary Board imposing restrictions on it.

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

It bemoans that the directions are issued for extraneous reasons in order to satisfy the media and political agendas.

It laments that if the said directions are enforced the Perpetual Group of Companies will suffer grave and irremediable financial loss and will be driven to bankruptcy.

The petitioners Perpetual Treasuries Ltd, Perpetual Asset Management Ltd and Perpetual Capital Holdings Ltd. cited the Central Bank, 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 Ltd. while instructed by G.G. Arulpragasam, Nihal Fernando PC, with Romali Tudawe and Maduka Perera, appeared for Perpetual Asset Management Ltd. and Perpetual Capital Holdings Ltd. Faisz Musthapha PC, with Faiza Markar instructed by Gowry Shangary Thavarasha, appeared for the Central Bank.