Seylan Bank Limited v. Construction and Personal Servicers (Pvt) Ltd. and Madhavan Lanka (Pvt) Ltd. – SC APPEAL 150/2011-2017

Brief
The case between Seylan Bank Limited (now Seylan Bank PLC) and Construction and Personal Servicers (Pvt) Ltd together with Madhavan Lanka (Pvt) Ltd involved determining the continuing enforceability of a prior mortgage bond (No. 177 dated 18.06.1996) in light of a later executed mortgage bond (No. 27 dated 04.04.1997). The court addressed whether the subsequent bond altered or extinguished the bank’s continuing security under the original bond and whether the appellant could seek a commission to value the mortgage property. It was held that the continuing security provision in the earlier bond remained unaffected by the execution of the subsequent bond, thus preserving the bank’s rights therein. The appeal by the appellant challenging the refusal to appoint a commission for market va