Gamini Seneviratne vs Sampath Bank Limited – SC CHC APPEAL NO 24/2008-2025

In the case between Gamini Seneviratne and Sampath Bank Limited and and Sujith Nishantha Seneviratne, the court addressed the enforceability of guarantee clauses and the application of the principle of excussion in creditor and surety claims. It was held that the plaintiff was not required to proceed first against the principal debtor before initiating action against the defendants as sureties, given the clear and express renunciation of this benefit in the guarantee document. The key legal principle reaffirmed is that a surety who expressly waives the benefit of excussion and undertakes co-principal debtor liability can be sued directly by the creditor. The decision was based on established precedents and the interpretation of Sri Lankan and Roman-Dutch law, underlining the binding nature