Appeal Court dismisses case by CIFL depositors opposing Central Bank recovery plan
Depositors of the failed Central Investment and Finance Ltd (CIFL), who are fighting a tough battle to recover their deposits, received a major blow on Tuesday when the Appeal Court ordered the vacation of a Stay Order imposed against the Central Bank (CB) and CIFL, and dismissed the case.
CIFL depositors at a recent meeting.
As a result of the ruling, the CB formula – 60 per cent of the deposits to be invested in the share market and for the balance 40 per cent to be retained as compulsory savings with a 5 per cent interest – has been accepted.
However depositors said they plan to challenge the ruling in a higher court (Supreme Court).
K. Wijaya Gunawardena, President, CIFL Depositors’ Association (CIFLDA), said the Stay Order issued on September 2013 was vacated without hearing the case.
With this unexpected decision of the Court, the depositors were panic stricken and the CIFLDA Committee was in session immediately after the court ruling to plan out a strategy to force the authorities to return their deposits or find an alternate but aceptable solution. One irate depositor in the Committee muttered “Meeka hariyata gahen watuna minihata gonaa enna wagai” (This is just like the bull knocking the man, falling from the tree, by the horn).
Mr. Gunawardena said that they were faced with an absolutely serious problem of their members ‘dying by the day’ and noted that their own former President Piyasena Weerasinghe, a lawyer himself, had died in the first week of June of heart failure. Earlier, he said Mercy Edirisinghe – the lovable actress died in hospital, and within this short period nine of their members have died of heart failure, etc and there are many who are ailing.
He said that one common reason for these deaths is that they were unable to meet the heavy medical bills adequately and also it is the shock and despair that kills. So, he reiterated that the Government through the CB is responsible for this situation because the records show that throughout the CB has failed to prevent the crash of these troubled financial institutions.
He said that they are going ‘hammer and tong’ in accelerating their protest campaigns to force the authorities to provide them relief. They would be visiting Munneswaram temple in Chilaw to invoke the blessing of the deities very soon. A general meeting of the CIFLDA is planned to be held next week and there, he said, it would decided to resume the ‘Sathyagraha’ (sit-in-protest) unto death at the CIFL premises, until the matter is permanently solved.
They also plan to carry on protest campaigns, he said, in areas where they have their branches and plans are afoot, he said to float the Jaffna branch immediately, where there are more than 300 depositors.
He said that they are also studying the other legal processes to seek relief and also studying the legal action that has been followed in other such similar instances, like Pramuka Bank, etc.
Several of the depositors attending the committee meeting blasted the Government saying it was responsible for the deaths of their members and they must see avenues to take legal action against the Government on this matter.