Seylan Bank PLC vs The Kandy Tyre House (Pvt) Limited – SC Appeal No: 121/2019-2025

This case concerns an appeal by Seylan Bank PLC against The Kandy Tyre House (Pvt) Limited, addressing the statutory right of appeal under Section 16 of the Recovery of Loans by Banks (Special Provisions) Act No. 4 of 1990. The central legal question was whether a right of appeal exists for preliminary orders issued under Section 16. The Supreme Court affirmed that no such right of appeal is statutorily conferred, aligning with previous rulings. This principle was upheld on the basis that appeal rights must be explicitly granted by legislation and that permitting appeals from preliminary rulings would contravene the Act’s objective of facilitating a swift and summary loan recovery process. Consequently, the High Court’s order was set aside, and the appeal was allowed with costs.

A.L. Sh