Yasodha case:

Judgement overturned

Bank allowed to sell appellant’s property:

Wasantha Ramanayake

The Supreme Court set aside a judgment of the Court of Appeal that granted an interim order staying the sale of property to recover Rs 165 million payable to the People’s Bank.

The court allowing the Special Leave Application filed by the respondent appellant People’s Bank noted that the Bank is entitled to proceed with the auction. The court also ordered that the petitioner- respondent Yasodha Enterprise (Pvt) Ltd Chairman Yasasiri Kasturiarachchi to pay the cost Rs 100,000 to the respondent-appellant People’s Bank.

The Bank filed the application challenging the interim order issued by the Court of Appeal staying the auction of the property in respect of the four mortgage bonds of the Yashodha Enterprise. The Bank stated that it passed a resolution in July 1997 to pay auction property in respect of the four mortgage bonds to recover Rs. 165,091,129.31 payable to the Bank.

It stated that due to litigations, the delayed auction finally fixed for November 07, 2009 but was stayed by the Appeal Court order obtained by the petitioner-respondent.

Justice Shiranee Thilakawardane delivered the unanimous judgment with Justice K. Sripavan and Justice P.A. Rathnayake PC agreeing.

Respondent-appellant People’s Bank, its Chairman W. Karunajeewa and Board members cited the Yasodha Enterprise (Pvt) Ltd and its Chairman Yasasiri Kasturiarachchi as the petitioner-respondent.