Seylan Bank Limited vs Cosmacorale Patabendige Ali Asker Anver Cadir and Abdul Majeed Faleel Jiffry – SC CHC APPEAL 31A/2003-2016

In the case between Seylan Bank Limited (Plaintiff-Appellant) and Cosmacorale Patabendige Ali Asker, Anver Cadir, and Abdul Majeed Faleel Jiffry (Defendants-Respondents, trading as “Island Operators”), the court addressed whether a Rs. 2 million term loan provided by the bank constituted a separate transaction from an existing overdraft facility or should be treated as a combined arrangement. It was held that the term loan and the overdraft facility are distinct agreements, each carrying separate legal obligations. The court reaffirmed that clear contractual separation should be maintained unless evidence demonstrates an explicit amalgamation, thereby entitling the bank to claim repayment on the term loan independently. This decision relied on analysis of the relevant agreements and witnes