Saparamadu and Another v. People’S Bank – sllr 2002 volume 2 page 015

In the case between People’s Bank and the 1st Defendant Company (along with the 3rd and 4th defendants as guarantors), the court addressed issues related to the validity of an unregistered Trust Receipt, the question of whether the Bank’s claim was prescribed under the Prescription Ordinance, and the legal effect and enforceability of the Guarantee Bond. It was held that non-registration of the Trust Receipt did not invalidate the instrument or bar recovery, and that the claim was not prescribed due to acknowledgments of liability and part payments made by the debtor. The Guarantee Bond was interpreted to constitute a continuing guarantee, permitting the Bank to proceed directly against the guarantors, who had expressly renounced common law protections. The appeal was dismissed, reinforcin