Eassuwaran And Others v. Bank Of Ceylon – sllr 2006 volume 1 page 365

In the case between Bank of Ceylon and the guarantors of Eassuwaran Brothers Food (Pvt.) Ltd., the court addressed whether transactions involving a loan facility, which was not a fixed term loan, fell within the scope of the Debt Recovery (Special Provisions) Act No.2 of 1990 and whether jurisdiction properly lay with the District Court or exclusively with the Commercial High Court under Act No.10 of 1996. It was held that the loan facility, secured by guarantees, constituted a “debt” as defined in the Act and that the District Court possessed jurisdiction to adjudicate the matter, resulting in dismissal of the appeal with costs. The decision reaffirmed the broad interpretation of “debt” under the statute and upheld jurisdictional competence of the District Court, emphasizing statutory con