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SLT is party to several court and out-of-court proceedings with Government agencies and other parties. The following is a summary of these proceedings during 2008, which could have a material negative impact on the Company.
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SLT appealed against the Arbitration award of ICC application No: 13839/M filed by M/s Informatics (Pvt) Limited, regarding the licence upgrade cost and maintenance fee for the TBR system provided to SLT by Informatics, which involves the award of compensation of US$ 1,143,630 and the payment of costs for US$ 85,000 and Rs. 9,440,625/- by SLT. |
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Global Electroteks Limited has initiated legal action under the High Court Case No: 20/2006 claiming damages of
US$ 12 million from SLT for purported unlawful disconnection of interconnection services. |
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Directories Lanka (Private) Limited (DLPL) filed case
No: 2/2006(3) in the Commercial High Court against SLT claiming Rs. 250 million in damages for purported unfair competition with regard to the artwork on the cover of the SLT Directory Publication. |
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SLT have filed an application under case No: IN/03/2008, seeking to set aside the determination issued by the Board of Review under which it is stated that the ‘balance of profit’ shall refer to ‘book profit’. In the event the determination of the Board of Review is upheld by the courts, SLT will have to incur a further cost of
Rs. 642,986,293/-. |
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Under Case No: DSP/00111/2008, SLT have filed action against the Colombo Municipal Council (CMC) requesting reduction of the Assessment Tax as amount due to CMC as at present to CMC as a consequence of an increase in Assessment Tax is approximately Rs.125 million. |
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Under Case No: DSP/00139/2008, SLT filed action against the Kandy Municipal Council (KMC) requesting a reduction of the Assessment Tax, as the amount due to KMC as a consequence of an increase in assessment tax by KMC is approximately Rs. 59 million. |
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