Nelka Rupasinghe vs National Development Bank PLC – SC CHC/APPEAL NO. 39/2010-2014

In the case between National Development Bank PLC (formerly National Development Bank Limited) and Nelka Rupasinghe alias Rupasinghe (the borrower) with Ahangama Gamage Nandawathie (guarantor and third-party mortgagor) as appellants, the Supreme Court addressed whether the Certificate of Sale—covering properties mortgaged by both the borrower and the guarantor—legally transferred ownership of all lands to the bank and whether the bank was thereby precluded from pursuing hypothecary action against the borrower. The findings established that, pursuant to relevant statutory provisions and Supreme Court precedents (specifically SC. Appeal Nos. 05 and 09/2004 and SC. Spl. LA. Nos. 31 & 32/2004), only the lands mortgaged by the borrower could lawfully be subject to auction and transfer; the guar