R H Steel Building Systems (Private) Limited vs DFCC Bank PLC and others – CA WRT 0299/24-2025

This case involves an application by R H Steel Building Systems (Private) Limited and two individuals (Petitioners) against DFCC Bank PLC (1st Respondent). The Petitioners challenged a resolution by DFCC Bank for parate execution under Section 04 of the Recovery of Loans by Banks (Special Provisions) Act, No. 04 of 1990, following a loan default by the 1st petitioner company. The primary contention shifted from initial claims of discrepancies in amounts to the assertion that the 1st petitioner was not a ‘wilful defaulter’ and this was not considered by the bank. The Court dismissed the application, holding that the ‘wilful defaulter’ status is not a statutory requirement for a parate execution resolution. It was determined that the Act only requires the fact of a loan default. The Court cl