THE SUPREME COURT OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA In the matter of an Appeal to the Supreme Court from the judgment pronounced on 12. 10. 2016 by the Civil Appellate High Court of the Western Province sitting in Colombo in terms of Section 5C of the High Court of the Provinces (Special Provisions) Act No. 54 of 2006 read with Article 127 of the Constitution.

National Development Bank Limited No.40, Nawam Mawatha, Colombo 2.

Plaintiff S.C. Appeal No.31/2017 SC/HCCA/LA No. 566/2016 Vs.

Provincial High Court Appeal Case No. WP/HCCA/COL 84/2011 District Court of Colombo Case No. 17820/MB

1. Kongodage Upul Sampath Ratnaloka Bake House “Ratnaloka”

No.01, 2nd Kilo Meter Post, Punagala Road, Bandarawela.

2. Katugaha Bandaranayake Herath Mudiyanselage Conrad Sena Katugaha “Promises”, No. 37/1B, Hospital Road, Melrose Place, Wevatanne, Bandarawela.

Defendants In the matter of an Appeal National Development Bank Limited Presently called and known as National Development Bank PLC No.40, Nawam Mawatha, Colombo 2.

Plaintiff-Appellant Vs.

1. Kongodage Upul Sampath Ratnaloka Bake House “Ratnaloka”

No.01, 2nd Kilo Meter Post, Punagala Road, Bandarawela.

1^st Defendant-Respondent

2. Katugaha Bandaranayake Herath Mudiyanselage Conrad Sena Katugaha “Promises”, No. 37/1B, Hospital Road, Melrose Place, Wevatanne, Bandarawela.

2nd Defendant-Respondent AND NOW BETWEEN National Development Bank Limited Presently called and known as National Development Bank PLC No.40, Nawam Mawatha, Colombo 2.

Plaintiff-Appellant-Petitioner Vs.

Katugaha Bandaranayake Herath Mudiyanselage Conrad Sena Katugaha “Promises”, No. 37/1B, Hospital Road, Melrose Place, Wevatanne, Bandarawela.

2nd Defendant-Respondent-

Respondent AND NOW IN THE MATTER OF A SUBSTITUTION BY AND BETWEEN National Development Bank Limited Presently called and known as National Development Bank PLC No.40, Nawam Mawatha, Colombo 2.

Plaintiff-Appellant-Petitioner-Appellant Vs.

Katugaha Bandaranayake Herath Mudiyanselage Conrad Sena Katugaha “Promises”, No. 37/1B, Hospital Road, Melrose Place, Wevatanne, Bandarawela.

2nd Defendant-Respondent-

Respondent [deceased]

2A. Christine Jennifer Denis No. 37/1B, Hospital Road, Melrose Place, Wevatanne, Bandarawela.

2B. Micheal Sena Vadim Katugaha No. 37/1B, Hospital Road, Melrose Place, Wevatanne, Bandarawela.

2A and 2B Substituted-Defendant-

Respondent-Respondent ***********

BEFORE : P. PADMAN SURASENA, CJ.

A.H.M.D. NAWAZ , J.

ACHALA WENGAPPULI, J.

COUNSEL : Geethaka Goonewardena P.C. with Rishan Vidanapathirana for the Plaintiff- Appellant-Petitioner- Appellant.

Dr. Sunil Cooray with Sudarshani Cooray for the 2A and 2B substituted Defendant- Respondent- Respondents ARGUED ON : 14th July, 2021 DECIDED ON : 07th November, 2025 ACHALA WENGAPPULI, J.

The Plaintiff-Appellant-Petitioner-Appellant Bank (hereinafter referred to as the Plaintiff Bank) filed an action before the District Court of Colombo to recover a sum of Rs. 496,568.50 with interest fixed at 12.58 % per annum, and also a sum of Rs. 1,215,032.67 per annum and legal interest, from the 1st Defendant-Respondent and the 2nd Defendant-Respondent-

Respondent (hereinafter referred to as the 1st and 2nd Defendants) on the basis they are jointly and severally liable to pay.

The 1st Defendant did not appear before the District Court. The Court proceeded to try the 1st Defendant ex parte. The 2nd Defendant contested the claim against him. After trial, the trial Court dismissed the action of the Plaintiff Bank in relation to the 2nd Defendant. Being aggrieved by the said judgment, the Plaintiff Bank preferred an appeal to the Provincial High Court. The Provincial High Court of Civil Appeal proceeded to dismiss the appeal of the Plaintiff Bank after affirming the judgment of the trial Court.

Thereupon, the Plaintiff Bank sought Leave to Appeal from this Court against the judgment of the Provincial High Court of Civil Appeal. After affording a hearing to the parties, this Court, on 15.02.2017, decided to grant Leave to Proceed to