Shamika Dilrukshi Lihinikaduwage vs Walgama Liyanage Jagath Nishantha – CA WRIT 385/23-2024

In the case between Walgama Liyanage Jagath Nishantha (Petitioner/Creditor-Respondent-Petitioner) and Shamika Dilrukshi Lihinikaduwage, Lihinikaduwage Sudumahaththaya, and Chaminda Kumara Lihinikaduwage (Respondents/Debtor-Applicant-Respondents), the court addressed the legal issue of whether the Debt Conciliation Board’s decision to treat a property transfer as a conditional transfer, essentially a mortgage, complied with Section 21A of the Debt Conciliation Ordinance. The court held that the Board had acted judicially and within its statutory power in treating the transaction as a conditional transfer. The principle reaffirmed was that proper judicial scrutiny and evidentiary weighing on such transactions are required in accordance with the Debt Conciliation Ordinance and that the concep