Monday Sep 21, 2026
Monday Sep 21, 2026
Monday, 21 September 2026 03:42 - - {{hitsCtrl.values.hits}}
The Commercial High Court in Colombo has allowed an application by shareholder and Director Rameez Mahamoor, finding that the affairs of Spark Air Engineering Ltd., had been conducted in a manner prejudicial to the interests of the company.
This landmark order, delivered on 21 August by Commercial High Court Judge Chamath Madanayake, followed a forensic audit into the company’s financial affairs and transactions involving its Directors.
The respondents named in the proceedings were the company and its Directors Robert Lionel Spittel, Ashan Tissa Dilhan De Alwis, Mohamed Rizmin Razik, Machiko Sharmilee Raheem and Samin Attanayake.
The central issue before Court was the handling of a $ 254,500 non-refundable deposit received by the company from MACKA Invest Company Ltd.
After examining the forensic audit and the transactions in question, the Court found that at least Rs. 9,400,788.57 had been misappropriated from the deposit. The Court held the sixth respondent, Samin Attanayake, responsible for the amount and ordered him to compensate the company within three months.
The Court noted that Rs. 1 million had been advanced by Attanayake to the company, while payments totalling Rs. 24.7 million were subsequently made in his favour. The Court found that there was no evidence justifying the additional Rs. 14.7 million and, after Samin Attanayake declined to give evidence explaining the excess payment, drew an adverse inference under the Evidence Ordinance.
The order also deals with 19,553 shares issued to Thisen Semal Attanayake, the son of Samin Attanayake, for a consideration of Rs. 19,553,000.
The Court found that there was no evidence in the company’s records of funds having been introduced by Thisen Semal Attanayake for the purchase of the shares. Accordingly, exercising its powers under the Companies Act, the Court directed the directors of Spark Air Engineering to record Rs. 19.553 million as a liability of Thisen Semal Attanayake to the company and to take appropriate legal steps to recover the money within six months.
The Court also found that the other directors had failed to take adequate safeguards against the misappropriation of company funds and had not acted promptly on repeated requests for an audit.
The petitioner was also awarded legal costs, payable jointly by the second to sixth respondents.
Akiel Deen with Hasith Samayawardhena appeared for the Petitioner. The first to sixth respondents were represented by Niranjan Arulpragasam with Ashenka De Silva.
