Jostein Viksund Design and Model Centre (Private) Limited vs. Bank of Ceylon – CA-WRIT-117-24 -2024

In the case between Jostein Viksund Design and Model Centre (Private) Limited and the Bank of Ceylon (Head Office) with M.H.T. Karunarathne (Auctioneer), the court addressed the legality of the issuance of a Notice of Sale and related board resolutions arising from a mortgage bond executed by the 1st Respondent Bank. The dispute centered on whether the bank’s actions were unlawful, ultra vires, and actuated by mala fide, particularly in the context of alleged noncompliance with agreed credit facility requirements and purported delay by the bank. It was determined that the petitioner failed to fulfill requisite undertakings and did not demonstrate improper motive or bad faith on the part of the bank. In dismissing the application with taxed costs, the decision reaffirmed the principle that