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

The case involved R H Steel Building Systems (Private) Limited and its guarantors (Petitioners) challenging a resolution by DFCC Bank PLC (1st Respondent) to parate execute a mortgaged property under the Recovery of Loans by Banks (Special Provisions) Act, No. 04 of 1990. The Petitioners defaulted on a loan facility and argued that they were not ‘wilful defaulters’ and that there were discrepancies in the amounts claimed. The Court dismissed the application, ruling that the ‘wilful defaulter’ status is not a statutory consideration for parate execution, clarified the amount discrepancies, and upheld the bank’s statutory right to recover loans expeditiously, emphasizing the legislative intent to facilitate economic development.

K. M. G. H. KULATUNGA, J. delivered the judgment dismissing