National Development Bank of Sri Lanka v. Serendib Asia (Pvt) Ltd. and Another – sllr 1999 volume 2 page 056

In the case between National Development Bank of Sri Lanka (Plaintiff-Appellant) and Serendib Asia (Pvt) Ltd and its Managing Director (Respondents), the court addressed whether sections 46 and 50 of the National Development Bank Act, No. 2 of 1979, deprived the High Court of jurisdiction to review the validity of a Bank’s purchase of mortgaged properties following a statutory sale. The court held that while the certificate of sale evidences compliance with statutory formalities, it does not preclude judicial review concerning the legality, good faith, or commercial reasonableness of the Bank’s conduct in the sale. Allegations of wrongful, fraudulent, or commercially unreasonable behavior by the Bank remained subject to court scrutiny, and interim injunctive relief could be granted pending