Union Trust and Investment Limited vs H. S. Parakrama – CA 336/1997-2011

The case between Union Trust and Investment Limited (formerly Maharajah Investments Ltd., Plaintiff) and B. J. Sarath de Fonseka (2nd Defendant/Appellant) addressed the issue of guarantor liability under a Guarantee Bond following a default under a lease agreement. It was determined that the 2nd Defendant was liable under the Guarantee Bond for the outstanding financial obligation, with the Court holding that dispatch of the demand notice to the address supplied by the guarantor satisfies the necessary legal requirements for notice, regardless of actual receipt. This decision relied on the Evidence Ordinance s.114(d) and established banking and guarantee law precedents, emphasizing the presumption of proper service via registered post where documents and procedure have been duly observed.