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Last Updated : 2024-04-23 15:53:00
12 July 2011 09:56 pm - 19 - {{hitsCtrl.values.hits}}
By Susitha R. Fernando
Commenting on the outcome of the Hedging case filed by the Standard Chartered Bank in the London Commercial High Court which ordered the Ceylon Petroleum Corporation to pay US $ 162 million or Rs. 18 billion with interest to the bank, a former Chief Justice said the ruling would have an impact on pending action in Singapore and Washington.
Former Chief Justice Sarath N. Silva who also headed the bench which heard the fundamental rights cases against the alleged CPC malpractice relating to the hedging issue said, now the government was in a dangerous position as the order which awarded the full amount together with interest would affect the decisions in the arbitrations filed by Citibank claiming $ 200 million in Singapore scheduled for late July and Deutsche Bank’s arbitration claiming $ 60 million in Washington scheduled to start in September.
“The two arbitrations would seek guidance of this case,” Mr. Sarath N. Silva said.
In this instance the banks had acted wisely by first getting the order of the London Commercial High Court since they could get benefited by it at the arbitrations, he noted.
Meanwhile Sarath N. Silva also charged that the government’s interest in the short term tax benefits on fuel had created this situation.
If the government had acted according to the Supreme Court direction and reduced fuel prices by passing the benefit to the people, the Judiciary would have been able to take the burden off the litigations by the foreign banks.
Following three fundamental rights petitions filed by UNP MP Ravi Karunanayake, Ven. Thiniyawela Palitha Thera and Laugfs Gas Chairman W.K.H Wegapitiya, the Supreme Court suspended the payments in the Hedging deal and the next step would have been taking the relevant banks before the country’s highest court.
The Supreme Court on November 28, 2008 ordered to suspend CPC chairman and suspend all payments by the CPC to the respective banks on account of Hedging instruments.
“Even at that point the government was collecting huge taxes from fuel and we requested the government to reduce it to Rs. 100 and give the benefit to the people. But the Cabinet headed by the President refused to do so,” the former CJ said.
When the court proposed to reduce fuel to Rs. 100, the government was getting a nearly 100% extra tax benefit by selling fuel.
“When this was informed to court, the counsel for petitioners stated that the purpose of their cases was not to create a conflict between the government and the judiciary and they opted to withdraw the cases which resulted in lifting the restraining orders against the CPC and its officials,” Sarath N. Silva said.
That was during the peak of the war and the people were in favour of the government and the former CJ said had he gone against the government he would have been branded as a traitor at that stage.
Subsequent to the withdrawal of the Supreme Court cases, the Central Bank on the advice of Attorney General Mohan Peiries decided that they would not pay the banks.
“Later when Nihal Sri Amerasekara filed another action when the arbitration case was filed in the international courts, the Attorney General in open court making submissions said that he was confident about winning these cases,” Mr. Silva stated.
The former CJ also said the government had incurred a huge loss by going to fight this case as the legal fees itself had amounted to nearly Rs. 200 million.
On Monday, July 11, in the case filed by Standard Chartered Bank before the Commercial High Court London, the CPC lost on all counts.
Lal Wednesday, 13 July 2011 05:45 AM
Our politicians will never learn lessons never admit their faults. They will never move out with dignity till the people trough them out.
a lawyer Thursday, 14 July 2011 02:36 AM
if the Sarath Silva as CJ was wise enough not to interfere with the Headging deal in an unconstitutional and illegal manner , (irrespective of its legality of that deal) GOSL would have paid the money and that would have been the end of it. Now, thanks to that unconstitutional Order to suspend payments, Banks went to Court in the UK as the UK courts had jurisdiction. So Mr. Silva should accept responsibility for what happened without trying to pass the buck.
Mr Retort Thursday, 14 July 2011 01:02 AM
Everybody get ready face revision of fuel prices soon not becauce of anything else; but due to foolhardy Govt donkeys and their stooges. This is our SUBS ANAGATHE
Lanka Putra Thursday, 14 July 2011 12:56 AM
NNow it is pretty obvious who are the traitors. Any way SUBA ANANA GANEEMAK
Hoodwinked Thursday, 14 July 2011 12:42 AM
Hedge us got our tails in a wedge, Sri lanka is on an edge planng how to honour the pledge. No point to have a grudge, nor fool the masses with more fudge,
Yehiya-Doha Wednesday, 13 July 2011 11:41 AM
Unprofessional government, in the history of Sri Lanka. Mr. Dahanayake better than all.
Bird Eye Wednesday, 13 July 2011 11:32 AM
Last nail of the coffin, Sri Lanka ..way to go.
Basila Wednesday, 13 July 2011 05:51 AM
Now every one can understand how danger is"Widhayaka"
Ryan Wednesday, 13 July 2011 05:43 AM
We remeber the old times when this useles fellow was thje CJ. People like these are real nuisance to a country.
S Kumaran Wednesday, 13 July 2011 05:41 AM
THANK YOU EX-CJ
samosa Wednesday, 13 July 2011 01:45 AM
As you said, whoever talks against the government is a traitor/LTTE...
pradeep Wednesday, 13 July 2011 03:21 AM
This former CJ delivered court rulings to satisfy his personal and political egos and ambitions.
Bumba Wednesday, 13 July 2011 03:09 AM
Another case of bungling by the government officials. In this case the Attorney General. It is time we send these guys packing before more harm is done to the country using the patriotic veil.
Abesekara Wednesday, 13 July 2011 03:04 AM
Mahinda Chintanaya
DN Wednesday, 13 July 2011 03:03 AM
Total amount will come to at least 44 billion. That mean every citizen in this country has to pay around Rs. 2200/- to cover up this amount. From where will get this money ?
ranjith Wednesday, 13 July 2011 02:39 AM
Ranjith
SN Silva tried to give release to people which is beyond the legal frame work and then gave a ruling to withdraw his judgement,
udaya Wednesday, 13 July 2011 02:26 AM
So the former CJ admits that he played safe politics rather than play fair as is expected from the head of the highest court. 'O Tempora O Mores'
Suren Wednesday, 13 July 2011 02:17 AM
Judiciary and Anti Corruption Unit must probe and Charge all those responsible and Confiscate whatever the kick backs they received to go through the Deal
Gamarala Wednesday, 13 July 2011 01:54 AM
This a good lesson for the politico who does not care the opinion of the learned people. They never suffer for their acts, but general masses have to. Shame & sad.
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