Sri Lanka Co-Operative Society v. Susai – sllr 2009 volume 1 page 067

In Sri Lanka Co-operative Society v. Susai, the court examined whether an action relating to dishonoured cheques, issued from banks outside Colombo but dishonoured in Colombo where the plaintiff transacted and resided, properly invoked the jurisdiction of the Colombo courts under the Civil Procedure Code (Sections 703 and 704(2)). The core legal issue centered on whether unconditional leave to appear and defend should be granted when reasonable doubts exist regarding the bona fides of the defence. The court determined that judicial discretion is not constrained to grant unconditional leave merely upon partial acceptance of the defence’s genuineness, particularly where no liability is admitted and full defence is pleaded. By invoking English law regarding place of payment in the absence of