Nelka Rupasinghe and Another vs. National Development Bank – sllr 2014 volume 1 page 068

In the case between Nelka Rupasinghe and Another (Plaintiff) and National Development Bank (Defendant), the court addressed the legality of the bank’s auction and subsequent hypothecary action involving both the borrower’s and guarantor’s lands. It was held that the bank’s authority under parate execution extends only to the property of the borrower, not the guarantor, and that inclusion of the guarantor’s lands in the Certificate of Sale was invalid. This holding reaffirmed the principle that parate execution may only be enforced against the mortgage property of the principal debtor, as established by prior Supreme Court precedents. Reliance was placed on established authorities that restrict the enforcement of recovery proceedings to the borrower’s assets, emphasizing that creditors exce