Seylan Bank PLC vs Mullavidanalage Don Amarasiri Hemachandra – SC APPEAL 235/2014-2016

In the case between Seylan Bank PLC (Plaintiff Respondent Appellant) and Mullavidanalage Don Padman Hemachandra and Mullavidanalage Don Amarasiri Hemachandra (Defendants/Respondents), the Supreme Court considered the interpretation of a mortgage bond (specifically Clause 11 of document “P 12”) and whether liability could exceed Rs. 300,000 plus interest. The sequence of events included a District Court judgment in favor of Seylan Bank for a sum exceeding Rs. 300,000, a subsequent High Court order setting aside that judgment and directing a trial de novo, and an appeal to the Supreme Court. The Supreme Court determined that the explicit limitation within Clause 11 of the mortgage bond controls, restricting the 2nd Respondent’s liability to Rs. 300,000 plus interest. It was also concluded th