Aqua World Private Limited vs. DFCC Bank – SC/APPEAL/219/2016-2024

In the case between Aqua World Private Limited and Kuranage Marian Stella Rose Perera (plaintiffs) and DFCC Bank PLC and others (defendants), the court addressed whether a bank is entitled to invoke parate execution under Section 5A(1) of the Recovery of Loans by Banks (Special Provisions) Act when, at the time of default, the amount due on the principal of any individual mortgage-secured loan facility is less than Rs. five million. It was held that only the principal outstanding for each loan facility at the time of default is relevant; aggregation of multiple facilities to surpass the statutory threshold is not permitted. The principle reaffirmed is that parate execution power is confined to circumstances where a single facility’s principal balance meets or exceeds the required threshold