Court dismisses Chris Nonis’ action against Agalawatte and subsidiary

The District Court of Colombo yesterday dismissed the case filed by Dr. Chris Nonis and Lalith Fonseka against Agalawatte Plantations and its subsidiary on a preliminary objection made by the Counsel of Agalawatte Plantations and its Directors. 

Case No. 19/2017DSP was filed by Nonis, the former Sri Lankan High Commissioner to the United Kingdom, and Fonseka to obtain inter alia enjoining orders and injunctions against Agalawatte Plantations Plc and its Directors acting in respect of its subsidiary Mackply Ltd.  

The preliminary objection taken by Agalawatte Plantations Plc and its Directors was on the basis that the District Court lacked the jurisdiction to hear and determine the plaintiff’s case as the matters raised in the complaint filed in the District Court required the District Court to make judgments on the violations of the provisions of Companies Act No. 07 of 2007 and the Articles of Association of Mackply.

The complaint of Nonis and Fonseka was that Agalawatte Plantations Plc and its Directors have been wrongfully appointed to the Board of Mackply, which is a subsidiary of Agalawatte Plantations Plc. 

The plaintiffs complained that was the requisition calling for an Extraordinary General Meeting in respect to Mackply (EGM) on 19 January 2017 and the decisions made at that meeting had violated the provisions of Companies Act No. 07 of 2007 and the Articles of Association of Mackply Ltd. 

The legal team for Agalawatte Plantations Plc and its Directors, through submissions made and filed in the Court, took up the position that these matters could not be heard by the District Court as the matters are in respect of the purported violations of the Companies Act No. 07 of 2007 and the exclusive island-wide jurisdiction to hear and determine such matters is only vested with the Commercial High Court of the Western Province. And on this basis the counsel’s position was that the action of Nonis and Fonseka should be dismissed by the District Court. 

District Court Judge Sujeewa Nishshanka considered the submissions of the parties on 24 April 2017 in favour of the position taken up by the Counsel for Agalawatte Plantations Plc and its Directors and dismissed the case of Dr. Nonis and Fonseka on the basis that the District Court is devoid of jurisdiction. Owing to the dismissal, the entire proceedings of this case in the District Court was terminated. 

This case of Nonis and Fonseka, which was filed on or around 7 February, sought ex parté enjoining orders preventing the Directors of Agalawatte Plantations Plc who were appointed to Mackply from discharging their duties as Directors. When the matter was sought to be supported, the legal team of Agalawatte Plantations Plc was also present in Court and sought to object to the ex parté enjoining orders. The District Court, however, did not issue the ex parté enjoining orders on that day and only proceeded to issue notice and summons. 

The series of legal battles between the Mackwoods Group of Companies in which Chris Nonis is the Chairman, and Agalawatte Plantations Plc commenced pursuant to a majority share sale of 60.8% of shares in Agalawatta Plantations Plc by Mackwoods to the Browns Group for Rs. 304 million

However, these shares have recently been acquired by the Damro Group of Companies. 

Agalawatte Plantations Plc and its Directors were represented in court by Counsel Nishan Premathiratne, who appeared with Nadun Wijayasiriwardene, Pravi Karunaratne and Yasith Hirimburegama, instructed by Sanath Wijewardane.

Nonis and Fonseka were represented by Counsel Chandaka Jayasundara, who appeared with Lakshmanan Jayakumar and Pulasthi Rupasinghe, on the instructions of Sanjay Fonseka.