Liyanage Holdings (Pvt) Ltd and Ranwala Liyanage Nuwan Prabath Liyanage vs Bank of Ceylon and M.H.T Karunarathne – CA/WRIT 0419/19-2021

In the case between Liyanage Holdings (Pvt) Ltd and Bank of Ceylon, the court addressed whether the Bank of Ceylon’s resolution to auction mortgaged property for recovering outstanding loan amounts was lawful. The court determined that statutory provisions governing the bank’s right to parate execution insulated such board resolutions from judicial review except in narrowly defined circumstances, which were not present in this case. The findings established that neither allegations of “interest on interest,” calculation errors, nor the impact of partial repayments provided sufficient grounds for judicial intervention. Further, the delay in seeking relief (laches) and incomplete disclosure of material facts by the petitioners precluded the exercise of writ jurisdiction. This decision reaffi