Yapa v. People’s Bank And Another – sllr 2006 volume 1 page 060

The case between Yapa (petitioner) and People’s Bank and another (respondents) addressed whether a borrower may contest a board resolution authorizing the parate sale of mortgaged property by alleging irregularities related to mortgage bond stamping and lack of valid consideration. It was held that indirect or direct challenges to the bank’s board resolution are precluded by Section 29D of the People’s Bank Act, and no prima facie case was demonstrated to justify injunctive relief. This decision emphasized that statutory powers under the People’s Bank Act for executing parate sales cannot be judicially invalidated by the borrower based on the asserted grounds, reaffirming statutory interpretation principles and reliance on established case law such as Felix Dias Bandaranaike and People’s B