Commercial High Court issues enjoining order restraining Nations Trust Bank

Commercial High Court Judge Priyantha Fernando on 28 November 2022 issued an enjoining order effective till 12 December 2022 restraining the Nations Trust Bank PLC from acting upon the Board Resolution passed dated 30 November 2021 to Parate execute the plaintiff’s apartment at Birds Park Residence, Rajagiriya, which was mortgaged for facilities obtained by the company named Geocyce Ltd.

The said enjoining order transpired consequent to the matter being transferred to the Commercial High Court from the District Court of Colombo. The Defendant bank took up the objection that the enjoining order in the District Court had lapsed and the plaintiffs were not entitled to the enjoining order.

Farman Cassim PC submitted on behalf of the Plaintiff that the Defendant bank had failed to Gazette the notice of resolution in terms of Section 8 of the Recovery of Loans Act No. 4 of 1990, which was a fatal procedural impropriety on the part of the bank.

It was further submitted that the bank is attempting to illegally and/or unlawfully Parate execute a third party mortgage as the plaintiff is a third party to the mortgage between the bank and the second Defendant company Geocyce Ltd. 

Justice Priyantha Fernando being satisfied with the submissions of the Plaintiff, re-issued an enjoining order until 12 December 2022. 

Farman Cassim PC with Attorneys-at-law Charaka Jayarantne, Budwin Siriwardena and Vinura Kularatne instructed by Purnima Gnanasekara appeared for the Plaintiff.

Chandka Jayasundara PC with Attorneys-at-law Rehan Almeida instructed by Chamida Weerainsghe appeared for the first Defendant bank.