A court case filed by a shareholder of the Mackwoods Group to reverse the sale of Agalawatte Plantations PLC (APL) shares by Group Chairman Chris Nonis was dismissed yesterday in the Commercial High Court of Colombo.
According to the law firm FJ& G de Saram, Commercial High Court of Colombo Justice A. L. Shiran Gunarathne dismissed the case bearing number 35/2016/CO filed by Nirmali Samaratunga regarding the sale of shares in Agalawatte Plantations PLC(APL) by Mackwoods Plantations (Private) Limited.
The case was filed against, among others, Mackwoods (Private) Limited, Mackwoods Plantations (Private) Limited and its directors including Dr. Chris Nonis and Shelendra Nonis.
Dr. Nonis had directed to sell 60.8 percent, or 15.2 million APL shares for a consideration of Rs. 20 in the midst of a dispute between family members who are shareholders of Mackwoods, for control of Mackwoods Securities (Private) Limited.
Browns Power Holdings (Private) Limited had purchased the shares and has announced a mandatory offer to purchase the remaining shares.
Samaratunga sought to have the sale of shares annulled on the grounds, among others, that the sale of the shares was against the interests of Mackwoods Plantations (Private) Limited and its shareholders.
A preliminary objection was raised by certain respondents including 1st respondent Mackwoods (Private) Limited, 2nd respondent Mackwoods Plantations (Private) Limited, 3rd respondent APL, and Directors including Dr. Nonis and Selendra Nonis, that the petitioner has sought to join two complete different and unique statutory remedies set out in the Companies Act No 07 of 2007 together in one action.
Gunarathne upheld the said preliminary objection yesterday, and dismissed the case filed by Samaratunga in limine.
In dismissing the, case Gunarathne specifically observed the unique and distinctive nature of the two statutory remedies as raised by the 1st Respondent, Mackwoods (Private) Limited, in its written submissions.
Attorney-at-Law (AAL) Avindra Rodrigo, with AAL Shanaka Gunasekara, and AAL Rozali Fernando appeared for 1st and 7th Respondents.
President’s Counsel (PC) K Kang-Isvaran, with AAL Lakshmanan Jayakumar and AAL Dilumi de Alwis appeared for the 2nd Respondent. PC Nihal Fernando appeared for 13th and 14th Respondents and AAL Chandaka Jasundara appeared for the 3rd Respondent. PC Romesh de Silva appeared for the Petitioner.