IN THE SUPREME COURT OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA In the matter of an Appeal under and in terms of Section 5(1) of the High Court of the Provinces (Special Provisions) Act No.10 of 1996 read together with Chapter LVIII of the Civil Procedure Code, from the Judgement of the Hon. Commercial High Court of Colombo dated 30/01/2018.

Sri Lanka Savings Bank Limited, No. 265, Ward Place, Colombo 07.

SC (CHC) APPEAL 26/2018 PLAINTIFF HC (Civil) no. 418/2011/MR Vs

1. Property Finance and Investment (Pvt) Ltd, M and M Center, 2nd Floor, No. 341/5, Kotte Road, Welikada, Rajagiriya.

2. Medagodage Thusitha Wijayasena

3. Ganegoda Liyanage Don Swarna Wijayasena, Both of No.32/1, Barnes Place, Colombo 7 DEFENDANTS AND NOW BETWEEN

1. Property Finance and Investment (Pvt) Ltd, M and M Center, 2^nd Floor, No. 341/5, Kotte Road, Welikada, Rajagiriya.

2. Medagodage Thusitha Wijayasena

3. Ganegoda Liyanage Don Swarna Wijayasena, Both of No.32/1, Barnes Place, Colombo 7 DEFENDANTS-APPELLANTS Vs Sri Lanka Savings Bank Limited, No. 265, Ward Place, Colombo 07.

PLAINTIFF-RESPONDENT BEFORE : S. THURAIRAJA, PC, J A.L. SHIRAN GOONERATNE, J, K. PRIYANTHA FERNANDO, J.

COUNSEL : Maura Gunawansha, PC with Prasanna Panawenna for the Defendants-Appellants instructed by S.G.A.

Gunasekara Kamal Dissanayake with Sureni Amaratunga and Hasara Mathraarachchi for the Plaintiff-Respondent Instructed by Hiranti Abeywickrema.

WRITTEN SUBMISSIONS : Written submissions on behalf of the Defendants-

Appellants on 10^th August 2023.

ARGUED ON : 16^th January 2024 DECIDED ON : 09^th August 2024 S. THURAIRAJA, PC, J.

1. The instant case is an appeal preferred to the Supreme Court by the Defendants-

Appellants against the Judgement of the Commercial High Court holden in Colombo dated 30th January 2018. The 1st Defendant-Appellant, namely Property Finance and Investment (private) limited (hereinafter sometimes referred to as the “1^st Appellant Company”) is a Company incorporated under the Companies Act No.07 of 2007. The 2^nd Defendant-Appellant, namely Medagodage Thusitha Wijayasena, (hereinafter sometimes referred to as the “2^nd Appellant”) is the Managing Director of the 1^st Appellant Company. The 3^rd Defendant-Appellant namely Ganagodage Liyanage Don Swarna Wijayasena (hereinafter sometimes referred to as the “3^rd Appellant”) is the wife of the 2^nd Defendant, and a Director of the 1^st Defendant Company (1^st, 2^nd and 3^rd Appellants hereinafter sometimes jointly referred to as “the Appellants”). The matrix of this case is based on two causes of action arisen against the Appellants for the recovery of a Term Loan of Rupees Six Million (Rs.6,000,000) with 17.5% interest per annum under the first cause of action, and a Short-Term Loan of Rupees Eleven Million (Rs.11,000,000) with 17.5% interest per annum under the second cause of action, both which have been granted by Pramuka Savings and Development Bank (hereinafter referred to as the “Pramuka Bank”) which was subsequently acquired by the Plaintiff-Respondent namely Sri Lanka Savings Bank Limited (hereinafter sometimes referred to as the “Respondent Bank”) to the Appellants. The said Pramuka Bank, on 1^st October 2007 was taken over by the Monetary board of Central Bank of Sri Lanka (CBSL) due to mismanagement and vested under the Respondent Bank, who is a fully state owned licensed specialized bank under the Banking Act No. 30 of 1998, which inter alia provides financial facilities to its customers in its scope of business.

2. Being aggrieved by the Judgment of the Commercial High Court, the Appellants by way of Petition of Appeal dated 27th March 2018 preferred an appeal to the Supreme Court and submitted herein the grounds of appeal listed under paragraph 8(a)-(t), which in the opinion of this Court was overly abundant and lacked precision. Thereby, on 05th July 2023, the Counsel for both parties were directed to file a joint motion setting out the questions of law mutually agreed upon. The Counsel in accordance with the direct