National Development Bank PLC vs Katugaha Bandaranayake Herath Mudiyanselage Conrad Sena Katugaha and others – SC Appeal 31/2017-2025

This case involves an appeal by the National Development Bank PLC (Plaintiff Bank) against the 2nd Defendant-Respondent regarding the recovery of loan facilities. The Plaintiff Bank sought to recover sums from the 1st and 2nd Defendants, alleging joint and several liability. The 1st Defendant proceeded ex parte, while the 2nd Defendant contested the claim, arguing non-receipt of Letters of Demand. Both the District Court and the Provincial High Court dismissed the action against the 2nd Defendant, finding that the Plaintiff Bank failed to prove that demands were made. The Supreme Court granted leave to appeal on questions concerning the burden of proof for Letters of Demand and the evaluation of evidence, including a ‘without prejudice’ letter. The Supreme Court affirmed the lower courts’