Waste Management in Muthurajawela: Korean Entrepreneur laments of fraud

Monday, 26 February 2018 00:31 -     - {{hitsCtrl.values.hits}}

By S. S. Selvanayagam

 Colombo High Court issued Interim Orders against the Respondents pursuant to the civil litigation filed by a Korean entrepreneur in the business of producing and generating energy from waste.

High Court Judge Ruwan Fernando issued the Interim Orders against four Directors of the KCHT Lanka Jang (Pvt) Ltd in which the Korean entrepreneur Sae Moo Jang is the Founder, Director, and investor.

Petitioner Sae Moo Jang cited his company, its directors K. Avanti Kumara Jayatilake, Ajani Danithika Nagahawala, Yongseok SEO and KALUPCO Management Services (Pvt) Ltd as Respondents.

Petitioner claims that he is the 100% shareholder of the said Company. He states that due to the unlawful and fraudulent conduct of the Respondents, 950 shares of the total 1,000 shares of the Company have been registered under name of the 2nd Respondent Director Avanti Kumara Jayatilake and laments that only 50 shares of the Company have been registered under his name.

He impugns that the Respondents have acted illegally, unlawfully and fraudulently in purporting to transfer his shareholding to the 2nd Respondent Avanti Kumara Jayatilake.

He states that on 10 March 2017, the Company was awarded the contract to develop a solid waste processing facility at Muthurajawela in the Gampaha District by the Ministry of Megapolis and Western Development/the Urban Development Authority.

He aggrieves that however, the 2nd Respondent failed to fulfil the undertaking given to the Petitioner Company to find investors and the Company failed to make the necessary payments to the government authorities to ensure the continuity of the project and as a result, the government authorities on 5 January 2018 cancelled the award that has been granted to the Company.

Petitioner alleges he did not intend to transfer 950 shares of the Company to the 2nd Respondent but he only agreed to sign a document to be shown to the investors.

He complains that the 2nd Respondent has already threatened to alienate the shares of the Company in the collusion with other Directors. Court issued the Interim Orders restraining the Respondents from transferring and/or alienating and/or in any manner encumbering the assets of the Company until the final hearing and determination.

Chandaka Jayasundare PC with Chinthaka Fernando instructed by Derrick Samarasekara Associates appeared for the Petitioner.