Court of Appeal Judge D.N. Samarakoon, presiding over a petition filed by New Nawaloka Medical Center (Private) Limited challenging the decision of the Colombo Commercial High Court to sell Nawaloka Hospital to Hatton National Bank, has issued an interim restraining order against the bank’s auction of the property. The order, effective until March 13th, was issued in response to an Interim Relief (RII) application filed by New Nawaloka Medical Center, contesting the Commercial High Court’s decision dated last Thursday (22).
Judge Samarakoon instructed the Court of Appeal Registrar to serve notices and interim orders to the respondents promptly, utilizing normal communication channels as well as telephone and fax, upon payment of the requisite fees by the petitioner.
The Colombo Commercial High Court had previously revoked the injunction in favor of New Nawaloka Medical Center last Thursday (22), allowing Hatton National Bank to proceed with auctioning the property to recover loans extended to the medical center. However, New Nawaloka Medical Center subsequently filed an RII application seeking to overturn the Commercial High Court’s decision.
On March 3, 2023, the Board of Directors of Hatton National Bank plc invoked the powers conferred by the Banks Debt Recovery (Special Provisions) Act No. 4 of 1990 to recover loans granted to New Nawaloka Medical Center. A proposal for auctioning the property was approved accordingly.
Join our WhatsApp / Telegram groups below.
