Mercantile Credit Ltd. v. Jayatilake and Two Others – sllr 1993 volume 2 page 418

In the case between Mercantile Credit Ltd. and Jayatilake and two others, the court addressed the issue of the proper interpretation of section 6(3) of the Debt Recovery (Special Provisions) Act No. 2 of 1990, specifically the court’s authority to enter a decree absolute versus a decree nisi in debt recovery proceedings. The court held that when a defendant fails to satisfy the court that there exists an issue in dispute, the decree nisi should be made absolute, reaffirming the principle that statutory provisions must be construed to uphold the objective of providing an effective remedy. This decision relied on sections 4(2) and 19 of the Act, as well as the interpretative maxim “ut res magis valeat quam pereat,” emphasizing that procedural rights should not obstruct substantive relief whe