Saifi Ismail Patel vs. Commercial Bank of Ceylon Limited – SC APPEAL/133/2010-2017

In the case between Saifi Ismail Patel (carrying on business as “Saifi Trading Company”) and Commercial Bank of Ceylon Limited, the court addressed the accrual of the cause of action regarding an alleged excess overdraft interest charge. It was determined that the cause of action arose from the demand letter dated 16.08.1997 (P7) rather than a subsequent letter dated 25.11.1999 (P14). The claim, having been filed after the three-year statutory period, was held to be prescribed by law. Relying on the analysis of correspondence and auditor evidence, the appellate court set aside prior judgments and allowed the appeal, reaffirming the principle that the timing of the initial demand governs the accrual of the cause of action in such claims. The decision emphasized statutory time prescription a