The Ceylon Fertiliser Company Limited obtained an enjoining order from the Commercial High Court October 22 against the Chinese company; Qingdao Seawin Biotech, its local agent and the People’s Bank. The enjoining order has prevented the People’s Bank from making any payment under a Letter of Credit opened in favour of the Chinese company, Qingdao Seawin Biotech Group Co., Ltd.
The enjoining order has also been issued preventing the Chinese Company and its local agent from receiving any payment under the Letter of Credit. State Counsel Sehan Soyza and Dr. Charuka Ekanayake, Deputy Solicitor General Nirmalan Wigneswaran and Additional Solicitor General Susantha Balapatabendi PC appeared for the Ceylon Fertiliser Company.
The Court was informed that even though the Chinese Company was required to ship sterile organic fertiliser under the tender contract, it had admitted in its shipping advice that the consignment may contain microorganisms. The National Plant Quarantine Services had tested the sample sent to them and had confirmed the presence of organisms, including certain types of harmful bacteria.
The consignment is a partial shipment worth more than a billion rupees that was procured through a tender process initiated by the Ministry of Agriculture.