A.M.S. Fernando v. S.A.N.K. Appuhamy – CALA 289/2002-2011

In the case between A.M.S. Fernando (Plaintiff-Petitioner) and S.A.N.K. Appuhamy (Defendant-Respondent), the court addressed whether the District Judge of Negombo correctly exercised judicial discretion under Section 706 of the Civil Procedure Code by permitting the defendant to appear and defend the action without the requirement of posting security. The case involved a dishonoured cheque for Rs. 550,000, with the defendant asserting the cheque was issued as security for a “seettu” transaction, not for an outstanding debt, and that consideration had already been satisfied by property transfer. It was held that the District Judge’s grant of unconditional leave to defend was proper, as the defence raised was plausible and appeared bona fide, shifting the burden to the plaintiff to prove con