Sampath Bank enjoined over disposal of Blue Mountain property

The Commercial High Court last week issued an enjoining order against Sampath Bank PLC from disposing the property owned by the Blue Mountain Properties Ltd., on which the Achillieon Condominium Complex development has progressed. 

The Plaintiff who is a purchaser of a condominium parcel of the said  Achillieon Condominium Complex held that there have been Sale and Purchase Agreements entered between parties including her and between the Blue Mountain Properties Ltd., and Blue Mountain Apartments Colombo Four Ltd., of which the bank was aware of and the bank had let deposits being collected from her and such other parties by the Blue Mountain Properties Ltd., and Blue Mountain Apartments Colombo Four Ltd., while the mortgage made by the Blue Mountain Properties Ltd., in favour of the bank was in existence and thereby has created a Constructive Trust.

It was also alleged by the Plaintiff that the bank has acted with questionable intention when it knew that monies have been collected from parties under the Sale and Purchase Agreements by Blue Mountain Properties Ltd., and Blue Mountain Apartments Colombo Four Ltd., for condominium parcels but the bank had not taken any action to get the mortgage of the property be discharged. 

Faizser Musthapha PC with Pasindu Silva and Harshana M. De Silva, instructed by Sanjeewa Kaluarachchi appeared for the Plaintiff.