Another lawsuit filed over DSI Samson Group at Commercial High Court
Colombo (LNW): The Colombo High Court of Commerce has ordered that the lawsuit lodged by Sajith Rajapaksa, former board member of DSI Samson Group, against its Managing Director, Kasun Rajapaksa, and the entire Board of Directors be taken up for hearing on November 20, 2023.
The court order was handed down on October 09, 2023, and is rooted in the serious allegations put forth by Sajith Rajapaksa, accusing the company’s Managing Director, Kasun Rajapaksa, and its directors – Thusitha Rajapaksa, Bhathiya Amarakoon, Asanka Rajapaksa, Nelani Rajapaksa, and Company Secretary Waruni De Silva, of blatant contempt of court.
The core of the issue is the alleged breach of a court order linked to his removal from the board of DSI Samson Group.
Rajapaksa was unlawfully removed from his role as Managing Director of three DSI Samson Group companies and as Director of five more. Upon hearing the evidence, the Court had subsequently ordered his immediate reinstatement.
A major contention in Rajapaksa’s lawsuit against the company chiefs revolves around its Secretary, Aruni De Silva, who, in alleged collusion with other directors, is accused of deliberately undermining her responsibilities. Silva, with the knowledge of the other directors, has deliberately acted in a manner which, by legal definition, is an obstacle to the existence of the institutions in which he holds the position of Managing Director and Director and to him as well, Rajapaksa detailed in his lawsuit.
Such neglect, as claimed in the lawsuit, not only jeopardises the institutions where Rajapaksa held pivotal roles but also poses significant challenges to him personally, he pointed out.
Sajitha Rajapaksa further revealed that he, along with an army soldier who was absent without leave, were arrested in relation to a shooting incident at his Borella Cross Road residence on June 22, 2023. It is during this tumultuous period that the Company’s directors are believed to have conspired to expel him, he emphasised.
Tensions have risen amongst the board members of DSI Samson Family Company, one of Sri Lanka’s premier private entities, following a proposal by a former Managing Director. The crux of the proposal centred on the equitable distribution of the Company’s shares and dividends amongst the family members. This proposal was tabled to the DSI Samson Group’s Board of Directors early last April.
Comprising around 30 companies, the vast business empire sees some of its primary profit-making entities led by the sons of their respective managing directors.
Sajitha Rajapaksa, who was abruptly ousted from his Managing Director position, is the son of the aforementioned former Managing Director, and spearheads “Samson Rubber Products Pvt. Ltd.”, the flagship company responsible for the lion’s share of foreign exchange within the conglomerate, evidence produced before the Court disclosed.
A leading manufacturer, Samson Rubber Products Pvt. Ltd. specialises in producing DSI tyres for international markets. The company prides itself on its state-of-the-art facility, using cutting-edge global technologies to craft high-value products.
Under Rajapaksa’s leadership, the companies boast commendable financial health, for they shoulder minimal debt, and are amongst the highest corporate tax contributors in the DSI group, and provide career opportunities for thousands.
Notably, during the tumultuous period between 2019 – 2022 affected by the April 21 Easter Sunday attacks and the Covid-19 pandemic, both Samson Rubber Products and Samson Rubber Industries stood resilient, and emerged as top revenue-generating private entities in Sri Lanka.