Nihal Seneviratne and Jeevana Priyantha Seneviratne vs State Bank of India – SC CHC APPEAL 53/2006-2014

In the case between State Bank of India (Respondent) and Nihal Seneviratne and Jeevana Priyantha Seneviratne (Appellants), the issue concerned whether the Commercial High Court had jurisdiction over an action based on a guarantee bond relating to banking facilities provided to Nihal Brothers Marketing (Pvt.) Ltd., the extent of liability under the guarantee, and the proper computation of the principal amount due versus the sum claimed. It was held that jurisdiction was properly assumed by the Commercial High Court, but the judgment sum required correction, with a reduction to account for overcalculation. The principle reaffirmed was that, under the contractual framework and legal obligations, personal guarantees for commercial transactions are enforceable subject to the precise sums shown