The Colombo Commercial High Court on Monday (3) lifted the enjoining order issued against Qingdao Seawin Biotech Group Co., Ltd, its local agent and People’s Bank.
Sri Lanka’s Fertilizer companies informed the court that they have reached a settlement with regard to the controversial Chinese Organic Fertilizer shipment.
The motions were filed by Colombo Commercial Fertilizer and Ceylon Fertilizer Corporation.
The terms that the plaintiff companies and the defendants, namely Qingdao Seawin Biotech Group Co., Ltd, its local agent, and People’s Bank, have agreed to for the settlement are as follows.
1. People’s Bank would release 75% of the consignment value to Qingdao Seawin Biotech Group Co., Ltd in terms of the Letter of Credit.
2. Qingdao Seawin Biotech Group Co., Ltd will obtain and provide certification for the raw material ingredients, and arrange fresh samples of a new consignment of organic fertilizer to be tested.
In terms of the contract, the samples should be free of pathogens and to ship the consignment only after the tested samples have been found to be in compliance with the Plant Protection Act, No. 35 of 1999, and after an Import Permit is obtained for the bulk shipment.
3. The amount released by People’s Bank will be set off after Qingdao Seawin Biotech Group Co., Ltd has shipped the second consignment.
The plaintiffs say that they agreed to withdraw the action against the defendants, subject to the aforementioned terms.
Both parties have agreed to issue a statement noting that the first shipment was returned due to the absence of an Import Permit.
Attorney-at-Law G.G. Arulpragasam, appearing for the third defendant in the action, the local agent for the Chinese Company, said that his client will retain the right to file legal action to seek payment for damages caused by the false and malicious allegations mentioned in the complaint against Qingdao Seawin Biotech Group Co., Ltd.
The complainants stressed that if such action is made, submissions will be made as well.
Deputy Solicitor General Susantha Balapatabendi, appeared for the complainants while Counsel Kushan De Alwis appeared for People’s Bank and Counsel Nihal Fernando appeared for Qingdao Seawin Biotech Group Co., Ltd.
(Except for the headline, this story, originally published by newsfirst.lk has not been edited by SLM staff)