Magistrate’s Court discharges case against Asia Capital on jurisdictional grounds for second time

Monday, 9 February 2026 04:39 - - {{hitsCtrl.values.hits}}

Asia Capital MD Raju Radha says Japanese party may have been misinformed or inadequately advised

Asia Capital Managing Director Raju Radha

The Fort Magistrate’s Court has discharged a criminal complaint filed by CC Trust Ltd., against Asia Capital PLC, ruling that the Court lacked jurisdiction to proceed with the matter.

The case, bearing no. MC Fort 36569/24, was instituted by CC Trust alleging criminal breach of trust in relation to a sum of $ 5,999,965, with an alternative charge of dishonest misappropriation under Section 389 of the Penal Code. The proceedings were initiated under Section 139(1) of the Criminal Procedure Code, alongside a request to frame charges under Section 182.

According to the complaint, the dispute arose from an alleged breach of a Shareholders’ Agreement dated 1 September 2017. CC Trust claimed that the funds had been entrusted to Asia Capital PLC as a non-interest-bearing deposit and contended that the company acted contrary to the agreed terms by converting the funds from USD to LKR. The complainant argued that such action amounted to criminal breach of trust or, in the alternative, dishonest misappropriation.

Asia Capital PLC raised preliminary objections through written submissions, challenging the jurisdiction of the Magistrate’s Court to hear and determine the matter.

After considering the objections, the Magistrate’s Court, by an order dated 7 January, upheld the preliminary objections and discharged the case, holding that it lacked jurisdiction to convict or proceed against the defendant.

The order effectively brings the proceedings before the Magistrate’s Court to a close, without any determination on the substantive allegations set out in the complaint.

Asia Capital PLC Managing Director Raju Radha said: “We acknowledge the order of the Magistrate’s Court dated 7 January, which upheld our preliminary objections and discharged the proceedings on jurisdictional grounds. The Court did not make any determination on the substantive allegations. Asia Capital PLC has at all times acted in accordance with applicable laws and its contractual obligations.”

He further observed that the Japanese party, CC Trust Ltd., “may have been misinformed or inadequately advised on the proper legal and jurisdictional framework applicable to the matter, including being misled to believe that complex commercial disputes involving arbitration and claims amounting to millions of US dollars could be resolved before a Magistrate’s Court.”

Radha added: “We have consistently maintained that this matter is commercial in nature and have always been open to resolving it through constructive discussion and appropriate dispute resolution mechanisms, efforts which continue in good faith.”