Defamatory case filed in 1990s Court delivers judgement against late film actor Gamini Fonseka

By Lakmal Sooriyagoda   

The Court of Appeal has delivered a judgement against late  veteran film actor Gamini Fonseka, over a defamatory action filed by him  in the late 1990s claiming Rs.300 million as damages from a State Bank.   

The greatest actor in Sinhala Cinema Gamini Fonseka had  filed a defamatory action in Hambantota District Court against People’s  Bank and a bank manager claiming Rs.300 million with legal interest for  alleged unlawful disclosure of bank loan details to the Ravaya Newspaper Editor. 

 
The film star had alleged that Ravaya Newspaper had  published an article with the meaning that Gamini Fonseka had defaulted a  payment of Rs.2.5 million which he owes to a bank despite there being a  settlement for the said loan facilities.  

Late Gamini Fonseka had served as the Chairman and Managing  Director of Sanasuma Holiday Resorts (Ltd) and maintained and operated  three bank accounts in the Tissamaharama branch of People’s Bank. The  Sanasuma Holiday Resorts (Ltd) had obtained loan facilities and  overdraft facilities from these bank accounts. The business and occupancy  at the hotel were adversely affected following the ethnic riots in July  1983 and in 1989 the hotel was destroyed by fire.   

Mr. Fonseka had said he could not pay the loan instalments  and interest regularly because of the aforesaid situation. Following  discussions between the bank and the company, a settlement was arrived at  and Mr. Fonseka on behalf of the said company had paid that amount to  the Tissamaharama branch of the bank as a full and final settlement.   
Fonseka had stated that the newspaper article is distorted,  false, defamatory and malicious, and it is a consequence of the conduct  of the Bank officer of Tissamaharama branch which has caused irreparable  loss and damage to his reputation and high esteem in a sum of Rs. 300  million.   
Hambantota District Court dated December 13, 1999, had delivered a judgement in favour of Mr. Fonseka.  

Having heard the appeal filed by the People’s Bank, the  Court of Appeal two-judge-bench comprising Justices C.P. Kirtisinghe and  R. Gurusinghe ordered to set aside the District Court Judgement and  allow the appeal with costs fixed at Rs. 31,500.  

It was alleged that the bank officer had given relevant  bank loan details to the Ravaya Newspaper. The Editor of the Ravaya Newspaper had admitted that he got the information from bank files, although he had not disclosed the name of the person who had given that  information.   

The Court of Appeal held that acts committed by the officer  do not come within the scope of his employment. “It is clearly outside  the scope of his employment. Therefore, the People’s Bank is not  vicariously liable for the acts committed by the bank officer,” the  Court of Appeal observed.  

Kushan De Alwis, P.C. with Counsel Chamath Fernando and  Milinda Munidasa appeared for the People’s Bank. Faiz Musthapha, P.C.  with Mehran Careem and Bishran Iqbal appeared for Gamini Fonseka.