AS COUN­SEL FOR CB FALLS SICK, CA DEFERS HEAR­ING ON PER­PET­UAL TREASURIES TO MARCH 10

Daily Mirror (Sri Lanka) - - NEWS - BY S.S.SELVANAYAG­AM

The Court of Ap­peal yes­ter­day (8) de­ferred to March 10 the re­sump­tion of sup­port­ing the Writ Pe­ti­tion filed by Per­pet­ual Treasuries, as the Coun­sel for the Cen­tral Bank was in­dis­posed.

When the mat­ter came up be­fore the Bench com­pris­ing Jus­tices Vi­jith K. Malal­goda (Pres­i­dent/ca) and S. Thu­rairaja, Ju­nior Coun­sel Faiza Markar made ap­pli­ca­tion that Se­nior Coun­sel Faisz Musthapha PC, who is ap­pear­ing for the Cen­tral Bank was in­dis­posed and moved for a post­pone­ment.

Coun­sels for Per­pet­ual Treasuries did not oppose the mo­tion.

Se­nior Coun­sel Faisz Musthapha PC ap­peared for the Cen­tral Bank on March 3, raised pre­lim­i­nary ob­jec­tions on the main­tain­abil­ity of the Writ Ap­pli­ca­tion, the pur­ported grounds of fu­til­ity, de­lay, ac­qui­esce and sup­pres­sion.

Pres­i­dent’s Coun­sel S.A. Parathalin­gam ap­pear­ing for Per­pet­ual Treasuries had re­sponded that the so called ob­jec­tions were not pre­lim­i­nary ob­jec­tions but were de­fences that could be taken up af­ter the hear­ing of his sub­mis­sion.

The Court hav­ing heard all par­ties de­cided to per­mit the Coun­sel for the Pe­ti­tioner to con­tinue to sup­port the Pe­ti­tion.

Pres­i­dent’s Coun­sel S.A. Parathalin­gam ap­pear­ing for

By the pur­ported Di­rec­tives of the Mon­e­tary Board, his client’s func­tions had come to a stand­still and there­fore there was a grave ur­gency ....

Per­pet­ual Treasuries had con­tended that the ac­tions of the Cen­tral Bank of Sri Lanka were ul­tra

vires (Be­yond its le­gal power or au­thor­ity) and un­rea­son­able in the is­suance of the Di­rec­tives un­der the Reg­u­la­tion. Pres­i­dent’s Coun­sel S.A. Parathalin­gam ap­pear­ing for Per­pet­ual Treasuries had re­sponded that the so called ob­jec­tions were not pre­lim­i­nary ob­jec­tions

He had sub­mit­ted the po­si­tion of his client, Per­pet­ual Treasuries, had been dis­pro­por­tion­ally and un­rea­son­ably vic­timised in the is­suance of the Cen­tral Bank of Sri Lanka and it was a mat­ter of grave ur­gency as his client would be driven to bank­ruptcy as a re­sult of the se­vere con­di­tions im­posed by the Mon­e­tary Board.

By the pur­ported Di­rec­tives of the Mon­e­tary Board, his client’s func­tions had come to a stand­still and there­fore there was a grave ur­gency, he un­der­lined.

The Pe­ti­tioner com­pany claims that in the ab­sence of any for­mal vi­o­la­tion of pro­ce­dure by it in the pur­ported bond sale, the true in­ten­tions of be­hind the is­su­ing of the said Di­rec­tions were mala fide and ul­tra vires of the reg­u­la­tory pow­ers of the Re­spon­dents.

It be­moans that the im­pugned Di­rec­tions are is­sued for ex­tra­ne­ous rea­sons in or­der to sat­isfy the me­dia and po­lit­i­cal agen­das.

It laments that if the said im­pugned Di­rec­tions are in force Per­pet­ual Group of Com­pa­nies will suf­fer grave and ir­re­me­di­a­ble fi­nan­cial loss and will be driven to bank­ruptcy.

The Pe­ti­tion was filed by Per­pet­ual Treasuries (Pvt.) Ltd, Per­pet­ual As­set Man­age­ment (Pvt.) Ltd. and Per­pet­ual Cap­i­tal Hold­ings (Pvt.) Ltd cit­ing Cen­tral Bank, Mon­e­tary Board and 11 oth­ers as Re­spon­dents.

In­structed by G.G. Arul­pra­gasam, S.A. Parathalin­gam PC with Nishkan Parathalin­gam and Ni­ran­jan Arul­pra­gasam ap­peared for Per­pet­ual Treasuries (Pvt.) Ltd and Ni­hal Fer­nando PC with Ro­mali Tu­dawe and Maduka Per­era ap­peared for the other two Pe­ti­tioner Com­pa­nies.

Faisz Musthapha PC with Faiza Markar in­structed by Gowry Shangary Thavarasha ap­peared for Cen­tral Bank.

Deputy So­lic­i­tor Gen­eral Milinda Gu­nati­lake ap­peared for the Mon­e­tary Board and the At­tor­ney Gen­eral.

Some of the Di­rec­tions are that (1) Per­pet­ual Treasuries (Pvt.) Ltd. shall not bid at any pri­mary auc­tions ex­ceed­ing 12.5% of the to­tal amount of­fered at such auc­tion and shall not bid ex­ceed­ing 20% of the of­fered amount of each item rep­re­sent­ing dif­fer­ent ma­tu­ri­ties; (2) The daily ag­gre­gate of the sec­ondary mar­ket trans­ac­tions by it in Gov­ern­ment se­cu­ri­ties shall not ex­ceed Rs. 1 Bil­lion; (3) It shall not, ex­cept with the prior writ­ten ap­proval of the Mon­e­tary Board, dis­trib­ute its prof­its, re­tained earn­ings or re­serves; (4) It shall not en­ter into any trans­ac­tion for con­sid­er­a­tion or oth­er­wise, ex­cept with the prior writ­ten ap­proval of the Mon­e­tary Board, in re­spect of any­thing not con­nected with the ac­tiv­i­ties of a pri­mary dealer.

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