DFCC Bank PLC vs LOLC Securities Ltd – SC APPEAL 109/2018-2025

In the case between DFCC Bank PLC and LOLC Securities Ltd (including associated parties), the court addressed whether a third party’s claim, specifically a lien on assets seized from a judgment debtor, could be adjudicated in a proceeding separate from the primary debt recovery action. The determination was made that all claims relating to seized assets must be resolved within the same proceeding, disallowing parallel or subsequent claim actions. Reference was made to the Debt Recovery (Special Provisions) Act No. 2 of 1990 and Sections 15(5) and 241 of the Civil Procedure Code. The findings established that judicial economy requires that all related claims be decided in the main debt recovery context, thereby preventing duplicative or inconsistent litigation. The appeal by DFCC Bank was a