Colombo Commercial High Court Judge Amendra Seneviratne pronounced his Order stating that he had taken into consideration all submissions made by Petitioner in the case No. 31/2013/CO as filed by the Attorneys-at-Law F.J. & G de Saram on July 24, 2013 in addition to the company being wound-up and those of the other intervening creditors.
It was noted that the company’s failure to comply with the statutory demand served by the Petitioner was taken into consideration before instituting winding-up action. Justice Seneviratne also said that the debts due to the Petitioner and other creditors were undisputed.
The failure of the company to pay off their debts due to the Petitioner and other creditors was taken into account despite the company claims of possessing billions of rupees to pay back, in issuing the order to wind up the company.
Touchwood Investments PLC CEO Lanka Kiwlegedera was present in Court when the judge issued the order to wind-up the company.
Other parties involved in the case were the Securities and Exchange Commission (SEC) whose lawyers speaking with the Sunday Times after the order was issued, stated that they were not in favour of the winding up of a listed company since it could have an impact on the market.
The Petitioner in the Touchwood winding up case that filed action against the company is Priyanka Nanayakkara of Rajagiriya who had stated that the company had not paid back to him the full amount due upon maturity of the trees that he had invested in.
In the written submissions made by Mr. Nanayakkara it was pointed out that around October 2006 he had invested in Touchwood Investments PLC and entered into a Tree Sale Order Agreement with the company for 920 Agarwood trees located at the Touchwood Khaopor Estate, Thailand by the company and was issued a Harvest Agreement Certificate bearing No.0004393 under which he would be the holder of Tree Sale Order No. SL 006183 on January 11, 2007. This agreement was issued along with a confirmation letter regarding payment of the minimum price per tree for trees purchased.