Avenra Gardens (Private) Limited v. Global Project Funding AG et al. – SC APPEAL NO. 157/2019-2022

In the case between Avenra Gardens (Private) Limited and Seylan Bank PLC, involving other defendants Global Project Funding AG, My Star Spain S.L., and CAIXA Bank SA, the court addressed whether Seylan Bank PLC was a party to the settlement entered on October 31, 2017, and whether the procedural requirements of section 408 of the Civil Procedure Code were satisfied. It was determined that the settlement only bound the Plaintiff and the 1st and 2nd Defendants; the signature and express consent of Seylan Bank PLC were absent from the record. The execution motion and order against Seylan Bank PLC were set aside, and the appeal was allowed. The holding reaffirmed that all parties must provide clear consent to settlements purported to bind them, with particular reliance on statutory safeguards