The Supreme Court has directed the Chairman of the People's Bank to investigate 'bad' loan transactions and officials who granted it and to prevent such occurrences in the future.
The Court made this directive while dismissing a petition by Yasodha Holdings (Pvt) Ltd challenging a Bank move to seize the assets of this organisation which have been mortaged.
Yashodha had filed a writ application in the Appeal Court against a Bank resolution to sell the assets mortgaged to the Bank by Yasasiri Kasturiarachchi, Managing Director of Yashodha Holdings (Pvt) Ltd to secure the overdraft facilities granted to the Company. The judgment was delivered in favour of the Bank but Yashodha appealed to the Supreme Court.
The Supreme Court bench comprising Chief Justice Sarath N. Silva, Justice Shirani Thilakawardana and Justice P. A. Rathnayake dismissed the appeal directing the sale of assets mortgaged. |
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