Chinese fertilizer case: Court extends enjoining order
The Commercial High Court yesterday further extended the
enjoining order issued to the People’s Bank and local shipping company until 19
November, preventing the payment of letters of credit to the local agent who
imported organic fertiliser from Qingdao Seawin Biotech Group Co. Ltd.
It also directed the defendants to file their objections on
or before the next call date.
Government-owned Ceylon Fertiliser Company Ltd., of
Hunupitiya – Wattala, had obtained an enjoining order preventing the payment
through People’s Bank to Qingdao Seawin Biotech Group Co. Ltd. for a load of
fertiliser imported after laboratory tests conducted on the fertiliser proved
the presence of a pathogen in samples.
Additional Solicitor General Susantha Balapatabendi,
appearing for the Ceylon Fertiliser Company, stated in court that although the
Chinese company wanted to ship organic fertiliser to Sri Lanka under the
agreement, the company had acknowledged that the consignment may contain
microorganisms.
The enjoining order restrained People’s Bank from making any
payments under a letter of credit opened on behalf of Qingdao Seawin Biotech
Group Co. Ltd. of China and its local agent from receiving any payments under
the letter of credit.
No comments