Satchithanandasivam V People’S Bank – sllr 2004 volume 2 page 063

In the case between SATCHITHANANDASIVAM (Plaintiff) and PEOPLE’S BANK (Defendant), the court addressed the validity of mortgage bonds as security for both past and future loan facilities under the People’s Bank Act, and whether the remedy of parate execution could be challenged on grounds of alleged violations of natural justice or statutory provisions. It was held that the clear language of the mortgage bonds (specifically clause (c)) validly encompassed all loan facilities, both past and future, binding the petitioners to their covenants. Reference was made to the precedent set by Wettesinghe v People’s Bank, affirming the bank’s lawful authority in matters of parate execution when no ultra vires action, breach of natural justice, or disregard of mandatory legal requirements was establis