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Appeal Court suspends auctioning of New Nawaloka Medical Centre
Colombo, Feb. 28 (Daily Mirror)- The Court of Appeal today issued an interim order preventing Hatton National Bank PLC from auctioning the property relating to New Nawaloka Medical Centre (Private) Limited.
Court of Appeal Justice D.N. Samarakoon issued this order to be effective until March 13. The Court made this order pursuant to a restitutio in integrum (RII) application filed by New Nawaloka Medical Centre challenging the Colombo Commercial High Court’s order dated 22nd February 2024.
The Court of Appeal registrar was directed to issue notice and the interim orders on the respondents yesterday (28) itself and the interim orders to be issued through ordinary means and also over the telephone and fax if the Petitioner pays charges.
The Colombo Commercial High Court delivered an Order on last Thursday (22) vacating its earlier enjoining order granted in favour of New Nawaloka Medical Centre (Private) Limited against Hatton National Bank PLC preventing parate execution. According to this order, the Hatton National Bank PLC was empowered to go ahead with the resolution adopted by its board of directors to auction properties securing certain loans which were granted to New Nawaloka Medical Centre (Private) Limited.
However, New Nawaloka Medical Centre filed this RII application seeking an order to set aside the order of the Commercial High Court dated 22nd February 2024.
The board of directors of the Hatton National Bank PLC had adopted a resolution on March 3, 2023 exercising its powers under Recovery of Loans by Banks (Special Provisions) Act, No. 4 of 1990 as amended to auction properties securing certain loans which were granted to New Nawaloka Medical Centre (Private) Limited.
President’s Counsel Romesh De Silva instructed by Attorney-at-Law Sanath Wijewardane appeared for New Nawaloka Medical Centre.
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