Mohamed Azwar Hassim vs Sampath Bank Limited – sllr 2008 volume 1 page 395

In the case between Mohamed Azwar Hassim (appellant/plaintiff) and Sampath Bank Limited (respondent/defendant), the court addressed whether the respondent bank was legally permitted, under Section 85 of the Mortgage Act and the express terms of the Pledge Agreement (notably clause 11), to sell pledged movables without obtaining a prior court order. It was decided that such a sale was permissible if both statutory and contractual requirements were satisfied, and that the necessary preliminary conditions—including proper notice of demand under Section 86—had been met. The court further examined whether alleged unauthorized customs surcharge payments and the claimed failure to mitigate loss had any bearing on the liability. The Supreme Court allowed the appeal and the reconventional claim, th