Co-operative Insurance ex-Chairman found guilty of contempt of Court

Tuesday, 31 March 2026 04:48 - - {{hitsCtrl.values.hits}}

The Learned High Court Judge of the Commercial High Court, Chamath Madanayake, recently delivered verdict finding the former Chairman of Co-operative Insurance Company PLC, Susil Shantha Weerasekera guilty for committing Contempt of Court by filing an affidavit containing falsehoods in support of case instituted by him bearing No.: CHC/37/2022/CO filed in the Commercial High Court.

The former Chairman Susil Shantha Weerasekera had initially initiated this case as the Petitioner against the Company and also against directors of Co-operative Insurance Company PLC alleging oppression and mismanagement. In support of this action, he had filed an affidavit sworn to that fact he is a shareholder of Co-operative Insurance Company PLC. The action which had been instituted under sections 224 and 225 of the Companies Act No. 7 of 2007 warrants the party to be shareholder of the respective Company. Accordingly, interim reliefs had been originally obtained on the representations made ex-parte by the former Chairman Petitioner Weerasekera.

Thereafter, the Respondents, majority of former and present directors of Co-operative Insurance Company PLC objected to the reliefs sought by the former Chairman Weerasekera and also objected to the maintainability of Weerasekera’s case on the basis that though he had represented to be a shareholder of Co-operative Insurance Company PLC, the documents such as the annual reports of company confirmed that Weerasekera was not in fact a shareholder. It was also alleged that these annual reports had also been signed by none other than Weerasekera the former Chairman.

Upholding the jurisdictional objection, Justice Priyantha Fernando (sitting then as a High Court Judge of the Commercial High Court at the time) held that the Petitioner’s case cannot continue, and proceeded to dismiss the action on 30 May 2023.

In this backdrop, Contempt of Court proceedings was preferred against the Petitioner Chairman Weerasekera on a charge of presenting a falsified affidavit to Court which constitutes an offence under Section 183B of the Civil Procedure Code. A further Contempt of Court application had been preferred against Weerasekera, the former CEO/Managing Director and the former Company Secretary for violating Interim Orders granted by Court. The Commercial High Court, pursuant to the applications of Contempt of Court being supported in March 2023 proceeded to issue Contempt of Court summons on the respective Accused parties which then proceeded into an extensive inquiry. On 23 March 2026, the former Chairman Susil Shantha Weerasekera was found guilty of the charge of Contempt of Court for having filed an affidavit containing falsehoods. The order on sentencing is to be delivered on 2 April 2026. The High Court Judge did not find the Accused guilty of violating Interim Orders of Court.

The present Chairman of Co-operative Insurance Company PLC A.A.J. Amarasinghe, and two former Directors D.L. Samarawickrama, and P.B. Jayarathne who preferred the Contempt of Court application were represented by Counsel Nishan Premathiratne with Sidath Gajanayaka, instructed by Premier Legal Consultants. Present Directors A.B. Senadeera and M. Widanagamage who preferred the Contempt of Court application were represented by Dr. Harsha Cabral, President’s Counsel with Nimashi Fernando instructed by Premier Legal Consultants.