Sarvo-Tech (Pvt) Ltd v. Commercial Bank of Ceylon PLC & Plantation Human Development Trust – NO: INJ 05/2022-2022

In the case between Sarvo-Tech (Pvt) Ltd (Plaintiff) and Commercial Bank of Ceylon PLC and Plantation Human Development Trust (Defendants), the court addressed the issue of whether an injunction should be granted under Article 143 of the Sri Lankan Constitution to restrain the 2nd Respondent from claiming on certain performance and advance payment bonds and the 1st Respondent from paying out on those bonds in a contractual dispute relating to construction works. It was held that interference with such bank guarantees is only appropriate in cases of established fraud. The findings established that no evidence of fraud or bank knowledge of fraud existed, and accordingly, the injunction was refused. The court relied on relevant precedents, including Hemas Marketing (Pvt) Limited v Chandrasiri