Court awards Supreme Plus Holdings 500% in costs for Idea Metals lawsuit

By Lakmal Sooriyagoda
The Colombo District Court has awarded the defendant company 500 percent in costs from the plaintiff company after the defense convinced the court that the plaintiff’s action was vexatious, and the defendant company is entitled to the maximum costs under Section 211(2) of the amended Civil Procedure Code.
The plaintiff, Idea Metals (Pvt) Ltd had filed an action against Supreme Plus Holdings Pvt. (defendant) relating to a Rs.561,527.94 transaction involving the sale and delivery of goods, which was initiated around the 9th of December 2022.
Counsel Chathurika Gowindage appearing for the plaintiff initiated a legal action to secure a judgment for the amount of Rs. 561,527.94, inclusive of legal interest and costs incurred from the 9th of November 2022.

The defendant through their Senior Counsel Ian Fernando filed answers   rejecting all allegations in the complaint concerning fictitious being unlawful and denies any involvement. 
Consequently, the Defendant submits a cross-claim for Rupees two Million, inclusive of legal interest, to be granted to the Defendant’s Organization. The cross claim was based on loss of good will to the defendants company.
Senior counsel Ian Fernando with Malsha Wijewaratna instructed by Derek Fernando Associates appearing for the defendant company raised preliminary objections alleging that the plaint is bad in law.  They argued that the plaintiff was suing the defendant on a bounced cheque and the cheque was not attached to the plaint as per Section 50 of Civil procedure Code.
It was also contended by Fernando that when the cheque is not annexed to the plaint according to Section 46(2)(i) the plaint is barred by a positive rule of law, hence the action must be dismissed with cost. Fernando further submitted to court that the plaintiff has sent several Letter of Demands and it is demonstrated that several defendants have been charged with filing frivolous actions against the plaintiff, seeking debts owed to them.
The defendant counsel further stated that a similar case was filed in District Court Colombo which was also dismissed as they have not annexed the cheque with plaint in accordance with Section 50 of Civil Procedure code.
Ian Fernando moved court under section 211(2) of the Civil procedure code to ask 500 percent as cost although the incurred cost of the Devika Gallage being the station manager in India of blue-chip company produced documents to show her standing in public and the cost of air tickets of Rs.1,25,000 to attend court for pre-trial was submitted to court in proof of 500 percent cost application.
The District Court judge asked defence counsel whether he’s going ahead with the cross claim of 2 million, in accordance with clients’ instructions counsel informed court that he would withdraw such claim if 500 percent cost is ordered in favour of his client.
The court taking time made a considerable bench order dismissing the plaintiff’s action for the want of representation on pretrial date made order that plaintiff’s action was vexatious and awarded the defendant company the maximum cost.