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6 million dollars with oil at 35 dollars a barrel, which the state-run bank has so far not honoured. The contract is one of several arranged for state-run Ceylon Petroleum Corporation (CPC) by a number of local and foreign commercial banks on which payments have been halted by a ruling from the island's Supreme Court.
One such deal went to CPC directly from Commercial Bank and another through People's Bank.
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People's Bank has so far failed to pay Commercial Bank. Payments by banks to their counterparties were not halted by Supreme Court.
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In a separate direct deal to CPC based on WTI crude that expires on June 30, 2009, Commercial Bank said on December 5, 2008 that it could be liable for about 8.93 million dollars if payments continued to be suspended on the court order with oil at 48 dollars at the time.
Commercial Bank has a 15 million dollar deposit from People's Bank.
The firm said in a stock exchange filing Monday that People's Bank had got a restraining order from the Colombo Commercial High Court preventing it from appropriating or setting off a 15 million dollar deposit of Peopl