Mahesh Corporation (Pvt) Ltd vs Seylan Bank PLC – CA WRT/0125/24-2025

The Court addressed whether Seylan Bank PLC’s resolution authorizing a public auction after default remained enforceable following a subsequent settlement before the Commercial High Court. It was held that the settlement merely rescheduled repayments without restructuring the fundamental terms of the facility, and expressly preserved the bank’s right to act upon the original resolution in the event of further default. The principle reaffirmed was that estoppel applies where parties consent to conditional arrangements, and writ relief is discretionary, requiring prompt action and absence of alternate remedies. Reliance was placed on standards governing estoppel, writ jurisdiction, and the effect of procedural technicalities. The impact of the decision underscores the binding nature of settl