Muthu Jeewarathnam & Sellappan Mehaletchumi vs Commercial Bank of Ceylon PLC – SC APPEAL NO. 54/2015-2023

In the case between Commercial Bank of Ceylon PLC (Appellant/Defendant) and Muthu Jeewarathnam with Sellappan Mehaletchumi (Respondents/Plaintiffs), the central legal issue concerned whether a bank could lawfully sell mortgaged property under section 12 of the Recovery of Loans by Banks Act when only one among multiple loans was in default. It was held that the statutory framework empowered the bank to proceed with the sale of the property despite the existence of multiple loans, provided default had occurred in at least one. The findings established that the High Court erred in granting an interim injunction restraining the bank’s parate execution. The appeal was allowed, the order of the High Court was set aside, and the bank’s statutory right to execute sale reaffirmed. This outcome und