Upul Chaminda Perera Kumarasinghe and Airport City Club Hotel Ltd. vs. Pan Asia Banking Corporation PC – SC APPEAL NO. 74/2021-2021

In the case between Upul Chaminda Perera Kumarasinghe and Airport City Club Hotel Ltd. (Plaintiffs/Appellants) and Pan Asia Banking Corporation PC (Defendant/Respondent), the court addressed the validity of the defendant bank’s resolution to parate execute multiple properties charged as security for two separate loan facilities under a single consolidated mortgage bond. It was held that the bank’s actions were lawful under the Recovery of Loans by Banks (Special Provisions) Act, No. 4 of 1990, and the plaintiffs were not deprived of any statutory remedies by reason of the consolidation. The principle reaffirmed was that a bank, acting within its contractual and statutory rights, may consolidate its resolution for recovery without breaching principles of natural justice or commercial reason