DFCC Bank PLC vs. Laththuwa Handi Harindu Dharshana – SC APPEAL 144/2022-2024

In the case between Laththuwa Handi Harindu Dharshana (Plaintiff) and DFCC Bank PLC (1st Defendant-Appellant) along with Schokman & Samerawickreme (2nd Defendant-Respondent), the court addressed whether, under the Recovery of Loans by Banks (Special Provisions) Act, the statutory requirement for a notice of sale (section 9) must be fulfilled exclusively by the bank or may be executed by an authorized auctioneer. It was held that compliance with section 9 by an authorized auctioneer, pursuant to a valid board resolution and appropriate notice to the borrower under section 8, suffices to meet statutory obligations. The court reaffirmed the principle that procedural compliance can be met through an authorized agent, provided all statutory prerequisites are satisfied and no prejudice is caused