Merchant Bank of Sri Lanka Ltd. vs. Deguruge Nihal Perera and D.C.A. Ramani Mallika – SC CHC APPEAL 08/2007-2015

In the case between Merchant Bank of Sri Lanka Ltd. (Plaintiff-Respondent) and Deguruge Nihal Perera (trading as Desan Enterprises) with D.C.A. Ramani Mallika (Defendant-Petitioners), the court examined the conditions under which an ex-parte judgment, entered by default due to the Defendants’ failure to appear, may be vacated. It was held that the appeal to set aside the ex-parte judgment could not succeed, as no sufficient grounds or evidence justifying the default were established. The principle reaffirmed was that mere procedural delays or unsubstantiated claims of due diligence do not warrant the vacating of judgments entered in default. This outcome was reached by evaluating the admissibility of affidavit evidence, the conduct of both parties, and established authorities on setting as