2024 Supreme(SRI)(SC) 12797
| 1 IN THE SUPREME COURT OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA In the matter of an application for leave to appeal from the Order of the High Court of the Western Province (Exercising Civil jurisdiction and Holden at Colombo) dated 30.08.2019, made under and in terms of Section 5 of the High Court of the Provinces (Special Provisions) Act, No. 10 of 1996 read together with the provisions contained in chapter LVIII of the Civil Procedure Code between V. Watumal (Private) Limited No. 21, 2nd Cross Street, Colombo 11 SC APPEAL 105/2020 Petitioner SC HC LA No. 64/2019 HC (Civil) No. CHC 84/2018/CO Vs. . LOLC Finance PLC Registered Office No. 100/1, Sri Jayawardenapura Mawatha, Rajagirya. (1st Intervenient Petitioner) 1st Respondent 1 |
| 1 2 P 2. LOLC Factors Limited Registered Office No. 100/1, Sri Jayawardenapura Mawatha, Rajagirya. rincipal Business Office No. 504, Nawala Road, Rajagiriya. (2nd Intervenient Petitioner) 2nd Respondent AND NOW BETWEEN V. Watumal (Private) Limited No. 21, 2nd Cross Street, Colombo 11. Petitioner-Appellant Vs. . LOLC Finance PLC Registered Office No. 100/1, Sri Jayawardenapura Mawatha, Rajagirya. 1st Respondent- Respondent . LOLC Factors Limited Registered Office No. 100/1, 2 |
| B D P Sri Jayawardenapura Mawatha, Rajagirya. rincipal Business Office No. 504, Nawala Road, Rajagiriya. 2nd Respondent- Respondent efore : P. Padman Surasena, J Kumudini Wickremasinghe, J K. Priyantha Fernando, J Counsel : Shamalie de Silva with Vishwaka Peiris for the Petitioner-Appellant. Priyantha Alagiyawanna with Heshani Gunarathna and Sahan Gunasekera instructed by Nuwan Jayasinghe for the 1st and 2nd Respondents-Respondents. Argued on : 13.02.2024 ecided on : 13.03.2024 3 |
| 1 K. PRIYANTHA FERNANDO, J . The Petitioner-Appellant (hereinafter referred to as the Petitioner) instituted proceedings in the High Court of the Western Province Exercising Civil Jurisdiction in Colombo (Commercial High Court), for the winding up of the Petitioner through Court in terms of Part XII of the Companies Act No. 07 of 2007 (the Act). 2. The first and the second Respondents-Respondents (hereinafter referred to as the Respondents) objected to the winding up application on the basis that this winding up application is an attempt to deny the creditors of the Petitioner of their dues. Upon inquiry, the learned High Court Judge of the Commercial High Court of Colombo by his order dated 30.08.2019 dismissed the application of the Petitioner for winding up of the Company. Being aggrieved by the said order of the learned High Court Judge, the Petitioner preferred the instant appeal to this Court. Upon hearing the application for leave to appeal on 28.09.2020, this Court granted leave to appeal on the questions of law (b), (f), and (h) of paragraph 18 of the Petition dated 11.09.2019. Those questions of law are; (1) Has the learned High Court Judge erred in failing to appreciate that by dismissing the application of the Petitioner all stakeholders including the creditors shall be gravely prejudiced in as much as (a) the company has ceased to conduct business; (b) there is no process of collection of its debts on behalf of the Petitioner and (c) no steps are being taken for dissolution of the Petitioner and consequently (d) no distribution can be effected? (2) Has the learned High Court Judge erred in failing to appreciate that the Petitioner has no legal obligation to follow procedure set out in Section 319 and 320 of the Companies act which is applicable only to volu |
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