Peoples Bank v. W. A. H. Weerasinghe – SC CHC/35/2009-2017

In the case between W. A. H. Weerasinghe (Plaintiff-Respondent) and Peoples Bank (Defendant-Appellant), the court examined whether the bank’s transfer of Rs. 17.5 million from a joint savings account was conducted negligently and in violation of established banking practices. The court held that the transfer was performed negligently, confirming that liability under the circumstances was established based on the breach of contract and violations of banking diligence standards. The authority and rationale for this holding were drawn from the applicable provisions of the Prescription Ordinance (Sections 6, 9, and 10), with a particular focus on the implications of concealed fraud and the determination of the prescription period. The judgment emphasized the principle that, where the cause of