• Krrish Transworks Colombo faces legal battle as creditors seek company liquidation
• Major creditors push for compulsory winding up

Krrish Transworks Colombo Ltd., the developer of the Krrish Square project, has, in its ongoing litigation with several of its creditors, submitted a proposal plan that involves a Chinese contractor taking over the project. 

Speaking to The Sunday Morning Business, Ministry of Rural and Urban Development, Housing, and Construction Secretary A.M.P.M.B. Atapattu revealed that several creditors of Krrish Transworks Colombo had taken the company to court. 

He clarified that he had been informed of this verbally in an informal manner and that he had not received any formal correspondence indicating the same.

Elaborating further, he stated: “A paper was submitted by Krrish informing that there is a Chinese contractor which will take over the project and complete it. I don’t know how realistic or accurate this is. I don’t know how they will come up with the additional investment to complete this project.”

Accordingly, he stated that they would wait until the proceedings before court were concluded and a decision was conveyed before making a decision on the fate of this much-maligned project.

The Sunday Morning Business reliably learns that a major creditor of Krrish Transworks Colombo had instituted an action before the Commercial High Court seeking the intervention of the court to compulsorily wind up the company, whereupon several other creditors had also sought to intervene in the matter.

Following this, the Commercial High Court had made an order winding up the company on or around August. Thereafter, Krrish Transworks Colombo had impugned this order of the court by way of a restitutio in integrum application. 

Krrish Transworks Colombo Ltd., the local company of the Krrish Group, entered into a lease agreement with the Urban Development Authority (UDA) in 2012 for 99 years at Rs. 5 billion for the Krrish Square project.

The proposed development was expected to be a large-scale mixed development that would have consisted of high-end residential towers, commercial and retail spaces, and a seven-star hotel.

The development was also meant to contain the Transworks building, a heritage site, which was to have retained its architectural character and be converted into a luxury boutique hotel.