Commercial Bank of Ceylon PLC vs Srija Ceramics (Pvt) Ltd – SC APPEAL 181/2018-2024

In the case between Srija Ceramics (Pvt) Ltd and Commercial Bank of Ceylon PLC, the court addressed the issue of whether mortgage bonds executed in 2015 could secure a subsequent or restructured loan advanced in 2016. It was determined that the “all monies” and “continuing security” clauses in the mortgage bonds may extend coverage to future advances, including the restructured term loan, provided that liability limits specified within each bond are respected. The decision reaffirmed the principle that mortgage bonds with such provisions can function as continuing security instruments, responding to future indebtedness under specific contractual terms. Reference was made to established legal interpretation of security interests and relevant banking statutes, with the court emphasizing the