Touchwood plants guarantees for settlement in Court
Thursday, 27 February 2014 01:31
Case No. 31/2013/CO filed by K.A.D.L.P. Nanayakkara to wind-up Touchwood Investments PLC was taken up in the Commercial High Court of Colombo on 25 February 2014 where counsel for the Petitioner, the Company sought to be wound up (Touchwood Investments PLC), Securities Exchange Commission, and many other investors of the Company were present in Court.
The CEO of the Company sought to be wound-up, Lanka Kiwlegedara, was also present with few other representatives of the Company. The case was called on 25 February for the purpose of recording a default clause to the terms of settlement recorded in court and for the purpose of filing a list of investors who will be settled in full by the Company sought to be wound-up.
Despite many speculations that the CEO of the Company has left the country to escape from the responsibilities and liabilities undertaken by him, he was present in Court when the case was taken up on 25 February 2014.
Counsel for Touchwood Investments PLC Harsha Amarasekera submitted that the cheques issued for the value of the 1st instalment payable to the Petitioner and seven other creditors will be honoured. Counsel further submitted that property (land) worth approximately Rs. 300 million will be kept as security before the payment of the second instalment. The value of the said property and details of the deeds are to be presented to court on 6 March 2014.
Even though the Company undertook on several occasions to file a comprehensive list of investors who will be paid, the Company has failed to do so up to date and Counsel for the Company further stated that the list would be filed on 6 March 2014.
Upon the request of the Counsel for the Petitioner Avindra Rodrigo, the court fixed 19 March 2014 for the inquiry of the winding-up. Accordingly if the Company fails to adhere to the terms of settlement, that is, to honour the cheques dated 27 February 2014 given to the Petitioner and seven other intervening creditors and to pay the 2nd instalment by 14 March 2014, the Petitioner will proceed with the winding-up application, and inquiry will be taken up on 19 March 2014.
A settlement was entered into by the parties on 31 October 2013 where the Company sought to be wound-up undertook to pay all the investors of the Agarwood Plantation in Thailand to whom the Harvest Agreement Certificates were issued by the Company and the Company failed to adhere to the terms of settlement. The terms of settlement were thus amended on several occasions upon numerous assurances given by the Company to settle all the creditors.
When the case was taken up in Court on 27 January 2014 the present Chief Executive Officer of the Company W. Lanka Kiwlegedara issued cheques dated 27 February 2014 amounting to the value of the 1st instalment that was due on 14 January 2014, from his personal account to the Petitioner and seven other intervening creditors.
Rozali Fernando with Avindra Rodrigo instructed by Messrs. FJ&G Desaram appeared for the Petitioner while Shehan Gunawardene with President’s Counsel Harsha Amarasekara instructed by Messrs. Paul Rathnayake Associates appeared for Touchwood Investments PLC.