Commercial High Court extends Enjoining Order against Chinese Company, People’s Bank
The Colombo Commercial High Court yesterday extended the Enjoining Order issued against Qingdao Seawin Biotech Chinese Company, its local agent Chelina Capital Corporation Pvt. ltd and the People’s Bank until November 19.
The case was taken up before the Colombo High Court Judge Pradeep Hettiarachchi.
The Enjoining Order was extended by the judge after considering a case filed by the Colombo Commercial Fertilizer Company.
On a previous occasion, Additional Solicitor General Susantha Balapatabendi appearing for plaintiff Colombo Commercial Fertilizer Ltd informed the court that the defendant Qingdao Seawin Biotech Group Chinese Company had got the Tender to export sterilized organic fertilizer worth over Rs.570 million and steps have been taken to export a consignment of fertilizer to Sri Lanka by activating the tender and that the fertilizer sample has been sent to the National Plant Quarantine Service for testing. Following that, testing of the sample confirmed the presence of harmful bacteria and other organisms in some of the fertilizers.
Accordingly, the Additional Solicitor General stated in court that the Chinese company had not fulfilled the requirements of the tender and that the company had accepted through the ship’s instruction foam that there were microorganisms in the organic fertilizer even though it wanted to ship the sterilized organic fertilizer to Sri Lanka.
According to the letter of credit issued on behalf of the Chinese company, the Additional Solicitor General had requested the court to issue an enjoining order restraining the company or its local agency from making or receiving payments from the People’s Bank.
When the case was taken up yesterday, the Counsels for the defendant Chinese Fertilizer Company appeared in court and stated that it was illegal to suspend the payment of the People’s Bank even though the company had submitted the legal standards reports and opened the letters of credit (LC).
Accordingly, the Counsels requested the court to give them a date to file their objections. Considering the Circumstances, Colombo High Court Judge ordered the defendants to file their objections in the next hearing. The case will be taken up again on November 19.