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2021 Supreme(SRI)(CA) 94

COURT OF APPEAL
Hon. Arjuna Obeyesekere J P/CA
Kumudu Samanthi Akmeemana – Appellant
Versus
Hatton National Bank and Others – Respondent
C.A Writ 72/2020



IN THE COURT OF APPEAL OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA In the matter of an application for a mandate in the nature of a Writ of Certiorari under and in terms of Article 140 of the Constitution of the Democratic Socialist Republic of Sri Lanka.

CA (Writ) Application No: 72/2020 Kumudu Samanthi Akmeemana, No. 95, Pirivena Road, Boralesgamuwa.

PETITIONER Vs.

1. Hatton National Bank.

2. Dinesh Weerakkody, Chairman, Hatton National Bank.

3. Jonathan Alles, Managing Director/CEO, Hatton National Bank. 4. L.R. Karunaratne.

5. R.S. Captain.

6. Amal Cabraal.

7. Palitha Pelpola. 8. D. Soosaipillai.

9. Nilantha De Silva. 10. Damien Fernando. 11. Madu Ratnayake.

12. Asoka Peiris.

13. Dr. Harsha Cabral P.C.

4th – 13th Respondents are Directors of Hatton National Bank

1st – 13th Respondents at Hatton National Bank, ”HNB Towers”, No. 479, T.B. Jaya Mawatha, Colombo 10.

14. Hewa Magallagodage Ruwani, No. 7/9, Galpotta, 1st Lane, Nawala, Rajagiriya.

RESPONDENTS Before: Arjuna Obeyesekere, J / President of the Court of Appeal Mayadunne Corea, J Counsel: S.N. Vijit Singh for the Petitioner Priyantha Alagiyawanna with Isuru Weerasooriya for the 1st – 13th Respondents Supported on: 24th March 2021 Written Tendered on behalf of the Petitioner and the 1st – 13th Respondents Submissions: on 31st March 2021 Delivered on: 30th April 2021 Arjuna Obeyesekere, J., P/CA The Petitioner states that by virtue of Deed of Gift No. 1121 dated 1st May 2018 and Deed of Gift No. 1166 dated 12th July 2018, both attested by R.D. Bandula, Attorney- at-Law, she became the owner of two plots of land, each in extent of 14P, situated in Boralesgamuwa.

The Petitioner admits the following matters in paragraph 6 of the petition:

a) The 14th Respondent, H.M. Ruwani is an acquaintance of hers;

b) The 14th Respondent had approached her for a loan and not having any liquid cash to satisfy the same, the Petitioner gave the 14th Respondent her two deeds of gift and told her to obtain a loan using the same;

c) The 14th Respondent handed over to the Petitioner a bank draft/cheque drawn in her name for a sum of Rs 26m issued by the 1st Respondent, Hatton National Bank,1 which the Petitioner deposited in her account, as borne out by the Statement of Account relating to the Petitioner’s current account marked ‘P3e’;

d) The Petitioner had thereafter issued the 14th Respondent a cheque in a sum of Rs. 26m;

e) She honestly believed that the 14th Respondent had kept the above deeds as a lien as agreed upon between themselves.

The Petitioner states that in November 2019, she found a notice and a banner affixed by the 1st Respondent on the aforementioned lands indicating that in accordance with a resolution passed by the 1st Respondent, the said properties will be sold by public auction on 20th January 2020. The resolution passed by the 1st Respondent on 26th September 2019 in terms of the Recovery of Loans by Banks (Special Provisions) Act No 4 of 1990, as amended (the Act) had been published in the newspapers of

13th November 2019 in all three languages – vide ‘P4c’ – ‘P4e’.

The Petitioner states that she immediately met the officials of the 1st Respondent where she learnt that the 14th Respondent had by Mortgage Bond marked ‘P5c mortgaged the aforesaid properties to the 1st Respondent and borrowed a sum of Rs. 26m from the 1st Respondent. The Petitioner concedes that the 14th Respondent has borrowed the said sum of money from the 1st Respondent. The Petitioner states that she thereafter examined the folios at the Land Registry and found that apart from the aforementioned Deeds of Gift and the Mortgage Bond, no other conveyances had been registered in the said folios – vide ‘P5a’ and ‘P5b’.

It is in this factual background that the Petitioner has filed this application seeking inter alia the following relief:

a) A Writ of Certiorari to quash the resolution passed by the 1st Respondent to sell the said two properties by public auction;

1 Vide ‘R6’ annexed to the Statement of Objections of the 1st Re

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