The Ceylon Fertiliser Company Limited has obtained an enjoining order from the Commercial High Court against the Chinese company which was contracted to supply organic fertiliser to Sri Lanka, 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 also prevents the Chinese Company and its local agent from receiving any payment under the Letter of Credit. State Counsel Shehan 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 told 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 over a billion rupees that was procured through a tender process initiated by the Ministry of Agriculture.