Following an inquiry held by the tournament committee, Old Dharmapalians have been found guilty of violating Section 8.5 of Part 'A' and Section 11 of Part 'B' of the tournament rules and regulations.
As hosts, Old Dharmapalians had booked the Steel Corporation grounds at Aturugiriya for their match against Kandy CC scheduled from January 10-12.
However, the umpires found the matting pitch unsuitable and dangerous for play and called off the match.
According to the tournament rules and regulations, the host club is solely responsible for the venue.
Following ExCo approval, the two clubs who have played matches against Old Dharmapalians - Moors SC and Air Force, will both forfeit points they gained against them.
Old Dharmapalians will become the second division I club to be suspended this season.
Sara trophy champs CCC were earlier suspended for not preparing a pitch for their match against SSC at Maitland Crescent on November 28.