Rathnapura Hospitals and Laboratories (Pvt) LTD vs DFCC Bank PLC – CA WRIT 470/22-2024

The case between Rathnapura Hospitals and Laboratories (Pvt) LTD and DFCC Bank PLC involved the bank’s resolution (P40) to auction the petitioner’s mortgaged properties under the Recovery of Loans by Banks (Special Provisions) Act. The central legal issue revolved around whether the bank’s actions were justified in light of claims that the concessions under Central Bank Circular No. 2 of 2022 were not duly considered. It was determined that the petitioner’s habitual defaults on loans and repeated failure to adhere to payment obligations rendered any claim for judicial relief untenable, reaffirming that judicial intervention is limited where clear defaults and statutory compliance exist.

B. Sasi Mahendran, J. — It was determined that the factual background, including the petitioner’s