Hetti Pathirannehelage Asoka Gunawardene vs Bank of Ceylon – CA WRT 497/23-2025

In the case between Hetti Pathirannehelage Asoka Gunawardene and Danangoda Gamage Yanitha Shrmila (Plaintiffs/Petitioners) and Bank of Ceylon and its officials (Defendants/Respondents), the Court addressed whether the aggregation of multiple loans—each initially below Rs. 5 million but cumulatively exceeding that threshold—authorizes the use of parate execution under the relevant statutory provisions. It was determined that the cumulative borrowing, secured by multiple mortgage bonds under the same security, could be lawfully aggregated for recovery purposes. The Petitioners’ challenges to the bank’s resolution and auction notice on grounds of alleged substantive and procedural irregularity were also considered. Relying on Section 25 of the Bank of Ceylon Act, the Recovery of Loans by Bank