Chinese fertiliser 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.

(Source: Daily FT – By T. Farook Thajudeen)