Punchi Hewage Ajithsena Silva vs Bank of Ceylon – SC FR 498/2012-2024

In the case between Punchi Hewage Ajithsena Silva (Plaintiff) and the Bank of Ceylon with its officers and the Attorney-General’s Office (Defendants), the court addressed whether the petitioner is entitled to the surplus proceeds from the resale of his mortgaged property, in accordance with the Bank of Ceylon Ordinance and Article 12(1) of the Constitution. It was determined that the petitioner’s rights under section 27 of the Ordinance were infringed by the bank’s restrictive interpretation and refusal to provide a full account of the sale and resale proceeds. The ruling reaffirmed the principle that mortgagees are obligated to account for, and return, surplus proceeds from enforcement sales to borrowers. Emphasis was placed on due disclosure of all financial details, ensuring transparenc