Informatics loses derivative action against IFS

Tuesday, 3 May 2016 00:02 -     - {{hitsCtrl.values.hits}}

The Commercial High of Sri Lanka dismissed a derivative action instituted by Informatics International Lanka Ltd. (Petitioner) against IFS AB, Sweden (1st Respondent), the global software vendor giant, and 14 other Respondents, on 26 April.

The derivative action was filed under the Companies Act of Sri Lanka by the Petitioner in a representative manner for and on behalf IFS Sri Lanka Ltd., a joint venture company set up consequent to a MoU between the Petitioner and IFS AB (Sweden). 

The said action was filed subsequent to previous failed attempts made by the Petitioner against the Respondents both in Sri Lankan Courts and in Singapore International Arbitration Centre. IFS AB raised a preliminary objection to the derivative action filed by the Petitioner as a final straw in a series of failed proceedings which have caused bad publicity and raised serious concerns among hundreds of employees in several Sri Lankan IFS entities.

Having heard the oral submissions made by Counsel for all the parties and having considered the written submissions filed by the parties, Shiran Gooneratne HC.J. upheld the preliminary objection raised by the Counsel for IFS AB (1st Respondent) and dismissed the Application filed by the Petitioner refusing to grant leave to proceed with the derivative action adding yet another unsuccessful attempt to the series of failures experienced by the Petitioner.

Counsel S. Sriskantha appeared for the Petitioner, whilst Counsel Viran Corea appeared for the 8th Respondent sailing with the Petitioner. Counsel Avindra Rodrigo with Rozali Fernando appeared for IFS AB (1st Respondent) and 13 other Respondents.