Court of Appeal extends Stay Order on New Nawaloka Medical Centre’s asset sale

The Court of Appeal (CA) has dismissed objections by Hatton National Bank (HNB PLC) against a previous order preventing the bank from seizing assets belonging to New Nawaloka Medical Centre Ltd. 

The lengthy interim order, issued yesterday, extends the stay on parate execution until the final court decision is reached.

This development follows New Nawaloka Medical Centre’s challenge to HNB’s attempt to auction hospital premises over a disputed loan of Rs.600 million. In March, the CA issued a temporary injunction preventing HNB from taking such action against New Nawaloka Medical Centre Ltd., a subsidiary of Nawaloka Hospitals PLC.

Following this, Nawaloka Hospitals issued a statement reassuring stakeholders