Interim orders issued against MBES Group vacated by Commercial High Court

Saturday, 7 December 2019 00:01 -     - {{hitsCtrl.values.hits}}

MBES Group Ltd., which is a leading wholesale distributor in commodities in the Central Province situated in Dambulla, is the subject matter of several cases before the Commercial High Court and the Supreme Court. 

On an application by a Director of MBES Group, namely Shantha Bandara Waidyasekera, eight interim orders were granted by the Commercial High Court in the HC (Civil) 07/2017/CO against the MBES Group, its Chairman and other directors from engaging in certain acts in the course of its business activity. 

Pursuant thereto an application was made on behalf of the company and the Chairman of the MBES Group to vacate the Interim Orders and upon a preliminary objection the case HC (Civil) 07/2017/CO was dismissed on 4 May with costs. An appeal was preferred by the Petitioner to the Supreme Court challenging the decision dated 4 May by Honourable Commercial High Court Judge Ahsan R. Marrikar. 

The Supreme Court, having considered the matter, set aside the dismissal of the case and directed the Commercial High Court to go into the matter expeditiously. However, though the Petitioner took up the position that the Commercial High Court cannot go into the interim order inquiry again, the Commercial High Court overruling such position on the basis that it had only considered the threshold issue on a preliminary basis, made order to inquire into the matters set out in the 1st and 2nd Respondent’s Petition to vacate the interim orders. 

The Petitioner has appealed that order and also sought a further clarification by the Supreme Court on the Supreme Court’s decision which are both pending before the Supreme Court and to be mentioned on 14 January.

However, on 22 November Commercial High Court Judge Ahsan R. Marrikar made order vacating all the interim orders and granting Rs. 75,000 costs against the Petitioner.

The company and its Chairman who preferred the application to vacate the interim orders appeared through Counsel Nishan Premathiratne who appeared with Pravi Karunaratne and Migara Cabral on the instructions of Suba Jayasooriya.  

The third Respondent, Lanka Menike Sooriyadasa, who is another Director of MBES, appeared through President’s Counsel Ikram Mohamed with Niyomal Senathilaka. The fourth Respondent, the Company Secretary, was represented by Charitha Jayawickrama. Both the third and fourth Respondents appeared on the instructions of S.B. Dissanayaka, where both sailed with the position taken by the first and second Respondents.

The Petitioner Shantha Bandara Waidyasekera was represented in Court by President’s Counsel Shanki Parathalingam with Mangala Niyarapola and Kushini Gunaratne Attorneys at Law on the instructions of Tharaka Jayathilaka.