|
|
|
 |
 |
 |
| Saturday, 29 May 2004 |
 |
|
 |
News | |
| News Business Features Editorial Security Politics World Letters Sports Obituaries
|
Lending institutions abused recovery of loans act by Wasantha Ramanayake Banks and other lending institutions corruptly abused the Recovery of Loans under Banks Special Provisions Act, No. 4 of 1990 against the third party mortgagers who were not the actual borrowers submitted K. Kanag Iswaran PC before the Bench of five Supreme Court Judges, yesterday. He was making submissions in an appeal from the order of the Court of Appeal by the petitioner-appellants Chandana and Sanath Ukwatte, two owners of an extent of land given as security to the first respondent DFCC bank as a security to a loan obtained by the second respondent, the MacCulum Breweries (Ceylon) Ltd. The Court of Appeal in its order dated January 14, refused to grant an interim order restraining the first respondent from auctioning the land belonging to the petitioner-appellants in terms of the Recovery of Loans by Banks Special Provisions Act, No. 4 of 1990 upholding that the Act can be used to auction property given as securities by the third party other than the actual borrower. They contended that the Act could not be extended to the third parties other than mortgager. K. Kanag Iswaran PC, Counsel for the petitioner submitted that provisions of the Act itself indicated that the Parate Executions could be resorted to in respect of the properties mortgaged by the actual borrower. "This was further proved by the fact that former Finance Minister K. N. Choksy sought to extend the Parate Executions to the non-borrowers by amending the Act. He submitted that the Supreme Court determining the Amendment at the Bill stage held that it was unconstitutional and therefore required the special majority of Parliament to pass into a law. He submitted that the Amendment had not been passed into a law to date. The Counsel contended that the law did not prevent the banks and the other lending institutions to use "harsh process" of parate executions which was often corruptly abused by the bank officials against mortgagers who were not the actual borrowers. The Counsel also cited intensive sections of the Act to support his argument and concluded his submissions. K. Kanag Ishwaran PC, with M.A. Sumanthiran and Viran Corea appeared for the petitioner-appellants. Romesh de Silva PC with Maithree Wickremasinghe appeared for respondents. The further hearing was fixed for June 25. |
|
News | Business | Features
| Editorial | Security
Produced by Lake House |
