Seylan Bank Limited vs Lanka Milk Foods (CWE) Limited – SC Appeal No. SC/CHC/16/2007-2025

This case concerns an appeal by Seylan Bank Limited against Lanka Milk Foods (CWE) Limited regarding the recovery of funds owed on two Performance Bonds. The Plaintiff sought payment from the Defendant Bank, which had assumed the operations of BCCI. The Defendant contested the validity of emergency regulations, the nature of the bonds, and damage calculations. The Commercial High Court ruled for the Plaintiff, a decision affirmed by the Supreme Court, dismissing the Defendant’s appeal.

A.L. Shiran Gooneratne J. delivered the primary judgment, outlining the Plaintiff’s claim for debt recovery based on Performance Bonds issued by BCCI. The judgment addressed the validity of Emergency (Banking Special Provisions) Regulations No. 2 of 1991, the Defendant Bank’s acceptance of the vesting order