Seylan Bank Limited vs Anver Cadir and Another – sllr 2016 volume 1 page 114

In the case between Seylan Bank Limited (Plaintiff-Appellant Bank) and Anver Cadir and Another, the court addressed the issue of whether a term loan and an overdraft facility extended by the bank should be regarded as distinct transactions or as a single amalgamated loan, thereby affecting the obligations of repayment. The holding established that the term loan and the overdraft facility are separate transactions, each subject to its own repayment terms, and that both must be repaid by the defendants with applicable interest. This decision underscores the principle that transactional intent and documented facility structures govern the characterization of loan arrangements, rather than the practical interrelationship of funds. Precedential authority and standard banking principles were app