Commercial High Court ruling against Bandula Gunawardena
View(s):Judge of the Commercial High Court Ashan Marikkar last week gave a judgment favouring Pan Asia Banking Corporation PLC against Alpha Digital International (Pvt) Ltd of No.345, High Level Road, Nawinna, Maharagama and Colombo District Parliamentarian Bandula Gunawardena of No.28, Jambugasmulla Mawatha, Gangodawila, Nugegoda for the recovery of loans and for the enforcement of the property mortgaged (in this context) by Mr. Gunawardena over the property bearing No.28, Jambugasmulla Mawatha, Gangodawila, Nugegoda.
In November 2011, Pan Asia Bank PLC had instituted action against Alpha Digital International and Bandula Gunawardena jointly for the recovery of a total of around Rs. 12 million and interest thereof being the amounts due on several banking facilities granted to the two parties and for the enforcement of the Mortgage Bond executed by Bandula Gunawardena over the property bearing No.28, Jambugasmulla Mawatha, Gangodawila, Nugegoda.
Mr. Gunawardena filed answer and contested the case by taking up a series of defenses. The case proceeded to trial against Mr. Gunawardena and for ex-parte trial against Alpha Digital International.
At the trial several witnesses had given evidence on behalf of Pan Asia Bank. In his evidence given on his behalf, Mr. Gunawardena took up the position that although he signed several documents he was unaware that he signed a Mortgage Bond favouring the Pan Asia Bank.
The Judge of the Commercial High Court in his judgment stated it cannot be accepted that Mr. Gunawardena who is a reputed Tuition Teacher and a prominent public figure has signed the mortgage without knowing that he in fact was signing a mortgage. The Judge concluded that Mr. Gunawardena signed the Mortgage with full knowledge about what he was signing and therefore he is liable with Alpha Digital International to pay the amounts due to Pan Asia Bank.
The judge noted that in terms of the said judgment if Alpha Digital International fails to pay the amounts due, the property bearing No.28, Jambugasmulla Mawatha, Gangodawila, Nugegoda will be auctioned to recover the amounts due.
Varuna Senadhira with Irfan Batcha instructed by Ms. Varuni Egodage appeared for Pan Asia Bank PLC.
Palitha Kumarasinghe P C with Nuwan Rupasinghe instructed by Jayantha De Silva appeared for Bandula Gunawardena.