U.K.COURT HAS NO JURISDICTION
Posted on July 26th, 2011
By Stanley Perera from MelbourneƒÆ’-¡ƒ”š‚
District Court in London made an order for the Petroleum Corporation of Sri Lanka to pay a foreign bank a sum of US$365 million.
The writer is a patriotic writer and an ordinary lay person.ƒÆ’-¡ƒ”š‚ Not a legal eagle also.ƒÆ’-¡ƒ”š‚ A lay personƒÆ’‚¢ƒ¢-¡‚¬ƒ¢-¾‚¢s view is British court order cannot be enforced in another independent country whether or not it belongs to the Commonwealth.ƒÆ’-¡ƒ”š‚ That hedging contract was entered in Sri Lanka.ƒÆ’-¡ƒ”š‚ Therefore any dispute arising on the contract must be argued and settled in a court of law in Sri Lanka. The Petroleum Corporation did not obtain the cabinet approval prior to the signing of the contract.ƒÆ’-¡ƒ”š‚ Therefore the contract is illegal and carries no weight at all.ƒÆ’-¡ƒ”š‚ Hence the contract is null and void.ƒÆ’-¡ƒ”š‚
The Supreme Court of Sri Lanka, a bench comprising of three senior judges including the chief justice, unanimously ruled and revoked the Hedging Contract.ƒÆ’-¡ƒ”š‚ Thanks to the former chief Chief justice Sarath Silva.ƒÆ’-¡ƒ”š‚ So a lower forum in a foreign country has no jurisdiction on that Hedging contract.ƒÆ’-¡ƒ”š‚ Furthermore British court has no jurisdiction on another independent country.ƒÆ’-¡ƒ”š‚ Most importantly a lower forum cannot supersede the Supreme Court order.ƒÆ’-¡ƒ”š‚ To me, it is laughable for the London District court to hear a case against a foreign Corporation.
The Supreme Court of Sri Lanka must charge that Judge of the London District Court for contempt of court the culprits of and thereafter GoSl must throw Fowzi and that scoundrel Corporation Chairman in to the Jail for life.ƒÆ’-¡ƒ”š‚ Both those rascals continue to plunder the public purse.ƒÆ’-¡ƒ”š‚ How come the authorities are not taking any action against the culprits of waterpetrol?ƒÆ’-¡ƒ”š‚ My because he is FowziƒÆ’‚¢ƒ¢-¡‚¬ƒ¢-¾‚¢s son.ƒÆ’-¡ƒ”š‚
July 26th, 2011 at 4:14 am
If The Petroleum Corporation did not obtain the cabinet approval prior to the signing of the contract. Then the Banks involved should know very well that the contract is illegal and carries no weight at all. As the contract is null and void Just ignore District Court in London order. Same as Ban Koor’s report which has no UN approval.
July 26th, 2011 at 5:40 am
The contact entered into was what is described as “zero dollar option” which capped the exposure amount at a price. Originally hedging deal benefitted CPC but from mid-2008 as price of oil decreased dramatically in tandem with global recession CPC had to make substantial monthly payments to the banks under the agreements. Efforts to restructure the deal failed leading up to default by CPC in late 2008.
Given the serious impact of the deal and its fallout, hedging contract ended up in the SL Supreme Court with assertion that it was invalid and improperly structured for the benefit of banks. Thereafter Supreme Court ordered the suspension of further payments by CPC and directed that fuel prices must be reduced, the then Petroleum Minister removed and CPC Board reconstituted.
However the Court order was later lifted in early 2009 as the Government failed to adhere to the directions of reducing fuel prices or removing the Minister.
The matter failed to be resolved amicably as the Government and banks stuck to their original positions and the matter going for international arbitration and legal proceedings
The Hedging Contract clearly stipulates the jurisdiction in which any disputes are handled. Both parties obviously agreed that the UK Courts would be the Jurisdiction. The UK Courts equally found the signatories to the contract had the authority to sign such a contract. (doubt SCB would have over looked the approval process in carrying out its due diligence).
The SCB obviously went for the “jugular” by going straight to Court without the Arbitration process Citi & Deutsche Bank chose to take.
Which insane International Bank is going to rely on SL Courts to resolve disputes when it knows the Judiciary is highly influenced by the current political powers.
July 26th, 2011 at 6:31 am
Ban tried to make a fast buck screwing uo CPC. The dumb chairman got caught.
July 26th, 2011 at 10:31 am
The British think Sri Lanka is still a British Crown Colony owned by the Queenie Elizebeth II. Time for Sri Lankans to tell the British that Sri Lanka and Sri Lankans are not their slaves!
July 26th, 2011 at 12:52 pm
Rohan
SCB, that is owned 18% by the Chinese felt “British Crown Colony” Judicial system was best placed to resolve the issue.
Keep blaming the British for ones own shortcomings.
Brilliant!
It’s not surprising the Tamil Diaspora are streets ahead of the Sri Lankan Diashoras
July 27th, 2011 at 9:17 am
Marco, please get an education in history. Stop being so gullible. Your proof, that todays generation are more stupid than previous generations and humanity is doomed. Marco maybe you should get an education and find out what the British Empire its systems and everything connected with that imperialist system is all about.
Marco are you are either an MI6 agent spreading disinformation on lankaweb.com? or someone who is not very well read in history. Either way you sound not very intelligent. Personally attacking me, instead of focussing on the issue
UK courts have no jurisdiction. Your the one with the shortcomings Marco. A shortcoming called HUMAN INTELLIGENCE! Marco get lost from lankaweb.com and leave it to people who can talk about issues in a intelligent manner. British Intelligence trolls like Marco have infiltrated lankaweb.com HELP!!!!!
These British agents everywhere! Sri Lanka watch out!
July 27th, 2011 at 2:10 pm
Rohan8
Yes, I’m maybe not that intelligent as you say. Everyone is entitled to ones own opinion.
Please tell me where I have attacked you personally or digressed from the issues at hand?
With respect, who is attacking whom?
Okay, if you say the UK Courts have no Jurisdiction, so be it!
Lankaweb (editors) is more than welcome to ban me from any further comment. It’s their prerogative.
I have no further comment on your unfounded allegation and personal attack.
Re- my comment on Tamil Diasporas vs Diashoras. You need to refer that to the US,UK and Aus consulates to get a better understanding as to how they perceive whose more effective.