Pesumal Bulchand Chandiramani and Jayashree Pesumal Chandiramani vs Chandru Lakshimal Sadhwani and Seylan Bank Ltd – SC APPEAL CHC NO. 20/2007-2019

In the case between Pesumal Bulchand Chandiramani and Jayashree Pesumal Chandiramani (Appellants) and Chandru Lakshimal Sadhwani together with Seylan Bank Ltd. (Respondents), the court addressed the validity of instructions issued regarding a joint term deposit account originally opened with BCCI, and the propriety of remittances made by the liquidator to the 2nd Defendant. The findings established that the instructions provided on Form 72 constituted proper authorization for the funds’ remittance, and the evidence did not support claims of misappropriation or collusion by the defendants. The court reaffirmed the principle that recoveries executed pursuant to clear, shared authorization, and in line with bank liquidation procedures, cannot be impugned for wrongful conversion. Reference was