Harry J. vs V.T. Vittachi: Another bout in the offing

Prevented from occupying chair, claims Vittachi

Dr. V.P. Vittachi of Stassen Export Limited (SEL) has threatened further legal action against one-time colleague Harry Jayawardena, also a director and a shareholder at SEL as he was not allowed to take his seat in the office by the latter, who had said that he was still the ‘chairman’ of the company, despite a court ruling earlier in the week, reinstating Dr. Vittachi in the board position.

“After the Supreme Court ruling, I went to the Stassen’s office to resume duties on Friday when I saw Harry Jayawardena sitting at my table and asked him what he was doing when he said he is the Chairman of the company and that I was only reinstated by the court as a director. He also said since I was only reinstated as a director, I could come to the office, but he remains the Chairman as per the Board Meeting which voted him into the position,” Dr. Vittachi told The Sunday Times yesterday.

This move by Mr. Jayawardena to call himself the ‘Chairman’ of SEL is in contempt of court according to corporate lawyers appearing for Dr. Vitachchi.

“This board meeting was illegal for two reasons – because it was not held with a proper quorum as there were only two directors present when there should have been three and also the company secretary had not registered this meeting with the Registrar of Companies, because it was illegal,” they said.

Dr. Vittachi is consulting his lawyers to convene a board meeting of the company with the other two directors, Zaki Alif and Raj Obeysekere possibly on Monday.

“This will be to state that the earlier board meeting held by Mr. Jayawardena is a non-event and to recognise that Dr. Vittachi is still the Chairman of Stassen,” a company source told The Sunday Times.

Dr. Vittachi said he went into the SEL premises along with Mr. Alif, Mr. Obeysekere and a lawyer when they were held up at the gate for about 10 minutes by the security guards. After the lawyer had spoken to the guards, they had consulted Mr. Jayawardena who let the entourage into the premises. Company sources said Mr. Jayawardena had made sure that he was at the Chairman’s seat when Dr. Vittachi entered the office. Mr. Jayawardena had also had an exchange of words with Dr. Vittachi’s lawyer who was present at the time. “He asked what my lawyer was doing in the office and he retorted that he had every right to be with his client,” Dr. Vittachi said.

Company sources said Stassen's staff refer to the Chairman’s seat and the constant changes in the chairmanship as the ‘musical chairs’.

Late last year, the District Court issued enjoining orders suspending the operation of Mr. Jayawardena's letter on December 4, 2006 removing Dr. Vittachi from SEL, preventing Mr. Jayawardena from interfering or influencing or obstructing Dr. Vittachi from functioning as a director in the company and also preventing Mr. Jayawardena from taking any steps to deprive or stop any payments and facilities to Dr. Vittachi in his office as a director. This developed into a bitter court battle, when on Wednesday the Supreme Court granted that Dr. Vittachi be reinstated in the company.