IN THE COURT OF APPEAL OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA In the matter of an application for mandates in the nature of Writs of Certiorari, Mandamus and Prohibition in terms of Article 140 of the Constitution.

1. WTL Automobiles (Private) Limited

310, Negombo Road, Welisara, Ragama.

2. Indika Sampath Merenchige

25, St Nicholaus Mawatha, Wattala.

Petitioners C.A.Writ No.0098/2023 Vs

1. Nations Trust Bank PLC

242, Union Place, Colombo 2.

2. Gihan Cooray Chairman, Nations Trust Bank PLC.

3. Hemantha Gunathilake

4. Conrad D’Souza

5. Rachini Rajapaksa

6. Russel De Mel

7. Savanth Sebastian

8. Sherin Cader

9. C. Wickremasuriya

10. Arjun Fernando

11. Dr. R. Shanmuganathan

12. C.K. Hettiarachchi 13. Dr. Sanjeewa Jah

3^rd to 13^th Directors Nations Trust Bank Plc, 242, Union Place, Colombo 2.

14. M. H. T. Karunaratna Licensed Auctioneer

50/3, Vihara Mawatha, Kolonnawa.

Respondents Before : Hon: N. Bandula Karunarthna, J. (P/CA)

: Hon: M. Ahsan R. Marikar, J.

Counsel : P Radhakrishnam with Anoma Piyadarshani and Sanjaya Marambe for the Petitioner Written Submission : By the Petitioners – Not Filed By the Respondent – Not Filed Argued on : 03.04.2023 Decided on : 08.06.2023 M. Ahsan R. Marikar, J.

Introduction

1) The Petitioners have instituted this action to obtain the reliefs prayed for in the prayer of the petition dated 14^th February 2023. The Petitioners supported this application and sought notices and the interim reliefs prayed for in the prayer (b) and (c) in the petition dated 14^th February 2023.

2) At this stage we have to consider, on the said reliefs prayed for by the Petitioners, if notices and interim orders can be issued against the Respondents.

3) The prayers sought by the Petitioners for the interim relief application are as follows;

(a) issue Notice of this application on the Respondents in the first instance;

(b) grant interim relief by issuing a Stay Order staying the 1^st to 14^th Respondents or any one or more of them from taking any further steps under the impugned Board Resolution dated 16.12.2022 (marked P19b) to auction the land and premises more fully described in the schedule hereto until the final determination of this application by Your Lordships’ Court;

(c) make Interim Order directing the 1^st Respondent Bank to tender to Court the detailed Loan Account Statements in respect of all loans granted to the 1^st Petitioner Company;

Facts of the Petitioners’ case

4) The Petitioners have contended that the 1^st Petitioner is a duly Incorporated Company in terms of the Companies Act No. 7 of 2007 and is engaged in the primary business of import and sale of motor vehicles. The 2nd Petitioner is the Director of the 1^st Petitioner’s Company.

5) The Petitioners have contended that they have obtained a term loan facility of Rs. 48,000,000/= from the Respondent’s Bank which was secured by a mortgage bond. The offer letter for the said loan facility and the mortgage bond are marked and produced as P2(a) and P2(b).

6) In the said term loan facility, the Petitioners have obtained a part of the finances of the purchase cost of the land described in the schedule. The said land referred to in the schedule had been developed by the 1st Petitioner Company into a modern motor vehicle showroom with a three-story office complex which is presently valued at Rs. 298,000,000. The valuation report is marked and produced as P4.

7) From 2014 to 2018, the Petitioners have received credit facilities from the 1^st Respondent Bank which is referred to in paragraph 6 of the petition. Offer letters related to the said credit facilities are marked as P5(i) to P5(viii). Further, an overdraft facility which was obtained by the Petitioners for Rs. 57,000,0000 was secured by the P6 mortgage bond.

8) Besides these known facilities, the 1^st Respondent Bank having done a credit review had extended the existing facilities as referred to in paragraphs 9 to 14, which were secured by the offer letters and mortgage bonds marked and produced as P8, P9(a), and P9(b).

9) After obtaining