Court grants TCMOL leave to appeal in Keangnam Lanka breach of agreement case

Court grants TCMOL leave to appeal in Keangnam Lanka breach of agreement case

Court grants TCMOL leave to appeal in Keangnam Lanka breach of agreement case

Written by Staff Writer

02 Dec, 2015 | 9:22 pm

The Capital Maharaja Organisation Limited filed a Leave to Appeal application against Keangnam Lanka Pvt. Ltd. and Keangnam Enterprises Limited over a judgement delivered by the District Court of Colombo.

When the Leave to Appeal application filed by TCMOL came up before Hon. M. Samayawardene and D.M. Samarakoon at the Civil Appellate High Court on Wednesday, December 2, President’s Counsel S.A. Parathalingam, appearing on behalf of The Capital Maharaja Organisation Limited, noticed the Court that the Maharaja Organisation should enter into an agreement with Keangnam Lanka Pvt. Ltd., and Keangnam Enterprises Limited, to construct a luxury apartment complex called Dawson Grand, on land which was owned by The Capital Maharaja Organisation Limited.

The agreement was entered in the year 2006 and the construction of the Dawson Grand was to be completed in five years.

As Keangnam Lanka Pvt. Ltd and Keangnam Enterprises limited had acted in breach of the said agreement and did not fulfill or comply with the conditions laid down in the agreement, and caused loss and damage to the Capital Maharaja Organisation Limited, an action was earlier instituted in the district court of Colombo, claiming a sum of USD 40 million in damages.

The District Judge of Colombo had dismissed the said action on preliminary objections raised by the Counsel who appeared for Keangnam Lanka Pvt.Ltd. and Keangnam Enterprises Limited, and therefore the order of the learned district judge is a palpably wrong order, and that the learned district judge had failed to consider that the agreement in issue has been novated by Keagnam Lanka (Pvt) Ltd. by its own correspondence.

Having heard the lengthy submissions by both parties, court granted leave to appeal to TCMOL.

S.A Parathalingam PC, N. Parathalingam, and Niranjan Arulpragasam instructed by G.G. Arulpragasam appeared on behalf of the TCMOL.

K. Kanag-Isvaran PC and N.R. Sivendran instructed by Messrs. Neelakandan and Neelakandan appeared on behalf of Keangnam Lanka Pvt.Ltd. and Keangnam Enterprises Limited.

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