Tuesday Oct 06, 2026
Tuesday Oct 06, 2026
Tuesday, 6 October 2026 04:41 - - {{hitsCtrl.values.hits}}
The Commercial High Court of Colombo issued an enjoining order staying the board resolution to Parate execute Ranfer Ltd., Ranfer Teas Ltd., and Kemulla Developments Ltd., properties until the 14 October 2026.
This was when the plaint filed by Ranfer Ltd., was taken up before the Learned Judge of the Commercial High Court, Justice Viraj Ranatunge on 30 September.
Farman Cassim, PC, appearing for the Plaintiff, contended that the Board Resolution of the DFCC bank authorising the public auction of the properties, purportedly in an attempt to recover outstanding banking facilities, was flawed in law. It was submitted that, unless an Enjoining Order is issued, the Plaintiff would suffer irreparable loss and damage.
The Learned President’s Counsel further submitted that each of the mortgage bonds referred to in the impugned resolution constituted a separate security, executed by different combinations of the Plaintiff, the 2nd Defendant and the 3rd Defendant, in respect of distinct categories of assets. It was contended that the DFCC bank had wrongfully amalgamated the amounts secured under the respective mortgage bonds, thereby rendering the impugned resolution legally defective.
It was further submitted that the failure to identify, in respect of each mortgage bond, the particular facility or facilities secured thereby, the amount enforceable under each bond, and the applicable contractual cap, prevented the respective mortgagors from ascertaining the lawful amount required to be tendered to prevent the sale of each property.
Upon considering the submissions, the Learned Judge issued an Enjoining Order staying the said board resolution until 14 October 2026.
Farman Cassim, PC, together with Charaka Jayaratne, Nethmi Dilanga and Vinura Kularatne, Attorneys-at-Law, instructed by Tharushika Fernando, appeared for the Plaintiff.
