Priyangani vs Commercial Bank of Ceylon PLC – sllr 2019 volume 2 page 136

In the case between Priyangani (and the substituted petitioner, initially K.G. Jothipala) and Commercial Bank of Ceylon PLC, the court addressed the appropriate exercise and supervision of the liquidator’s power to sell assets of a company under liquidation. The central issue concerned whether the sale of the company’s assets should be conducted by public tender or by public auction, particularly in the context of maximizing value for creditors. It was held that the District Court’s revised order mandating a public auction was valid and properly protected creditor interests, reaffirming the principle that liquidation proceedings and asset sales remain under the control and supervision of the court as per sections 292 and 293 of the Companies Act, No. 7 of 2007. This decision emphasized the