Blue Ocean Group interim injunctions issued by the Commercial High Court of Colombo have temporarily restrained several affiliated companies from proceeding with disputed property transactions linked to a high-value condominium deal.
Blue Ocean Group interim injunctions halt apartment transfers dispute
The Commercial High Court (Court 2) in Colombo on Tuesday granted multiple interim injunctions against companies affiliated with the Blue Ocean Group, including Blue Ocean Legand Ltd, Blue Ocean Waves, and Link Engineering. The order follows legal action initiated by Horton Realty Ltd., which alleges breaches of contractual obligations related to a condominium development in Colombo 3.
According to court submissions, the dispute centres on a master agreement under which the Blue Ocean Group of Companies had agreed to transfer 13 apartment units located at 19th Lane, Colombo 3, to Horton Realty Ltd. The total transaction value was estimated at approximately Rs. 477.9 million, incorporating a debt set-off component and material supply arrangements.
The agreement reportedly included a debt settlement of Rs. 277 million owed by the Blue Ocean Group, alongside an additional component of around Rs. 191 million tied to the supply of steel. The steel was to be provided by G.T.B. Steel Ltd., a company affiliated with the Blue Ocean Group, forming part of the overall contractual framework.
Horton Realty Ltd. informed the court that the defendants had failed to fulfil their obligations under the agreement. It was further alleged that the companies had taken steps that could undermine the agreement, including attempts to dispose of or otherwise alienate the apartment units that were contractually committed to the plaintiff.
In response, the Commercial High Court issued interim relief aimed at preserving the status quo until the matter is fully adjudicated. The injunctions specifically prevent the defendants from cancelling or terminating the master agreement and the associated sale and purchase agreements. Additionally, the court has restrained the defendants from transferring, selling, or otherwise alienating the disputed apartment units.
The case highlights ongoing legal and commercial risks within Sri Lanka’s property development sector, particularly in large-scale condominium projects involving multiple contractual layers. Disputes of this nature can have broader implications for investor confidence and project continuity, especially when they involve substantial financial commitments and interconnected supply arrangements.
Legal representation in the matter included President’s Counsel Faiszer Musthapha, along with Dayasiri Jayasekara, Shaheeda Barrie, Pulasthi Rupasinha, and Sierra Amarasiri, who appeared on behalf of the plaintiff. The defendants were represented by President’s Counsel Dr. Wijedasa Rajapaksha with Madava Jayawardane for the first to third defendant companies, while Ikram Mohammed PC with Eranthi Abeywardane appeared for the fourth defendant, who supported the plaintiff’s position.
The issuance of Blue Ocean Group interim injunctions underscores the judiciary’s role in enforcing contractual compliance and preventing potential asset dissipation during ongoing litigation. By restricting the disposal of the contested properties, the court aims to ensure that any eventual judgment can be effectively implemented without prejudice to the parties involved.
As the case proceeds, further hearings are expected to examine the validity of the claims and the extent of contractual breaches alleged by Horton Realty Ltd. The outcome will likely be closely monitored by stakeholders in Sri Lanka’s real estate and construction sectors, given the financial scale and legal complexities involved.