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Monday, October 8, 2012

Govt. settles for Rs. 115 m from Prima over Rs. 1.2 b claim

The Government has accepted Rs. 115 million as settlement from Prima Group’s Ceylon Grain Elevators Plc on litigations claiming Rs. 1.2 billion over violation of Customs laws.

The company in a filing to the CSE said an inquiry bearing number DG/97/1038 was held by Sri Lanka Customs in 1997/1998 into an alleged violation of Customs laws and forfeiture was imposed on Ceylon Grain Elevators for/in a sum of Rs. 1.194 billion by Sri Lanka Customs on 22 July 1998.

This forfeiture however was challenged in the District Court, Colombo via case no 5195/5pl and Court of Appeal Case No 839/98 by the company.

Furthermore there was protracted litigation, another action was instituted by the Attorney General against the company for the recovery of the forfeiture as a debt in District Court proceedings bearing number 866/DR on 1 August 2011.

Ceylon Grain Elevators said there had been negotiations between the parties regarding these rival claims of liability and non-liability.

“Negotiations have now culminated in the State accepting a sum of Rs. 115 million which the company has agreed to pay in lieu without conceding liability and accordingly terms of settlement have been entered in District Court Colombo Case bearing No 866/DR on 5 October 2012 and all other cases now stand withdrawn and dismissed without cost,” the company said in its filing to the CSE.
source - www.ft.lk