Commercial High Court Judge Priyantha Fernando has issued an Enjoining Order against Lanka Sathosa from obtaining money upon a Performance Bond given to Lanka Sathosa by Softwatch Infosys (Pvt.) Ltd. The order will be effective until April 8.
The Plaintiff, Softwatch Infosys, stated inter alia that Lanka Sathosa, the first Defendant in the action, was wrongfully trying to encash the bank guarantee issued by Hatton National Bank, the second Defendant, in favour of Lanka Sathosa Limited by Softwatch Infosys (Private) Limited.
Even though Lanka Sathosa Limited has stated that a forensic audit could be conducted and completed on the POS and ERP system delivered to Lanka Sathosa by Softwatch Infosys, the latter has stated that they had completed the POS and ERP system integrating all Lanka Sathosa outlets and warehouses, but Lanka Sathosa was not making the balance payment of Rs.112,941,954.
Softwatch Infosys further stated that the demand made by Lanka Sathosa to Hatton National Bank to encash the bank guarantee is illegal. Therefore, the Commercial High Court issued an Enjoining Order until April 8, preventing Lanka Sathosa from receiving the money.
President’s Counsel Farman Cassim, with Counsel Charaka Jayaratne and Mithun Imbulamure instructed by Vidanapathirana Associates, appeared on behalf of Softwatch Infosys (Pvt.) Ltd.
