Appeal Court stays contempt of court proceedings against Agalawatte Plantations Plc and its directors

The Appeal Court, in the latest development on the continuing legal battle between Mackwoods Teas Ltd, which is part of the Mackwoods Group of Companies owned by the Nonis Family, and Agalawatte Plantations PLC on January 20 issued an interim order staying contempt of court proceedings against Agalawatte Plantations PLC and five of its directors.

This is in respect of case No. SPL 176/16 filed in the District Court of Nuwara Eliya which had been instituted by Mackwoods Teas (Pvt) Ltd in respect of the Labukelle Tea Centre.

Court sources said the petitioners by their January 19, 2017 petition came before the Court of Appeal on the basis that the issuance of the contempt summons and charge sheets against the Directors of Agalawatte requiring them to be present before the District Court of Nuwara Eliya to answer charges of contempt on the purported violation of Enjoining Orders on the 24th of January 2017, was in the first instance bad in law and that none of the charges leveled against the Petitioners formed grounds sufficient enough to constitute an offence of contempt of court.

Furthermore, the Petitioners drew the attention of court to certain flaws and defects in the contempt application filed by Mackwoods Tea before the District Court and owing to same the Permanent Judge of the District Court of Nuwara Eliya ought to not have issued summons for contempt.

On hearing these submissions, the court “made a finding that the issue of contempt summons can be impeached if there is no justification and granted an interim order staying the contempt proceedings against Agalawatta Plantations PLC and its directors until the case was heard and determined before the Court of Appeal”.

The litigation between Agalawatte PLC and Mackwoods came to being in light of the recent sale of the majority shareholding of 60.8 per cent of Agalawatte Plantations PLC to the Browns group for a transaction value of Rs.304 million.

Agalawatte Plantations PLC and its directors were represented by Dr. Harsha Cabral P.C. with Nishan Premathiratne, Nadun Wijayasriwardena and Yasith Hirimburegama on the instructions of Sanath Wijewardena, Attorney-atLaw.