Nallathamby Chandra vs Merchant Bank of Sri Lanka PLC – SC CHC APPEAL 32/2008-2024

The case between Merchant Bank of Sri Lanka PLC and the 2nd and 3rd Defendants addressed the issue of recovery of an outstanding bill discounting facility and the enforceability of mortgage bonds executed as security. It was determined that the evidentiary record, comprising documentary submissions and admissions, established an obligation to repay the disputed sum despite procedural challenges and defenses based on misjoinder and marital law. The decision reaffirmed the principle that a validly executed security instrument, supported by statutory provisions such as those contained in the Bills of Exchange Ordinance and the Civil Procedure Code, creates an enforceable debt obligation.

A.L. Shiran Gooneratne J.: It was determined that the Plaintiff had substantiated its claim by establis