The Supreme Court yesterday directed the People’s Bank to make arrangements to recover more than Rs.165 million owed to it by a well-known Colombo businessman. 

Supreme Court bench comprising Justices Shirani Tillakawardena, S. Sripavan and P. A. Ratnayake made this order following a special appeal filed by the People’s Bank against Yashoda Private Limited chairman Yasasiri Kasthuriarachchi.

Earlier Mr. Kasthuriarachchi had obtained a stay order from the Court of Appeal.

The Stay Order prevented the recovery of Rs.165,091,129.35 in relation to four mortgage bonds entered into with People’s Bank.

However People’s Bank chairman W. Karunajeewa and eight others filed a special appeal before the Supreme Court where they said a resolution had been passed on July 10, 1997 to recover the money payable by selling the properties belonging to Yashoda Holdings.

The People’s Bank asked the Supreme Court to set aside the Appeal Court order and asked a direction to proceed with the selling of the property to recover Rs.165,091,129.35 owed to it by Mr. Kasthuriarachchi.  Justice Tilakawardena ordered the bank to proceed with resolution passed on July 10, 1997 and sell the property of Yasasiri Kasthuriarachchi at a public auction to recover the sum of money. The Court also ordered Mr. Kasthuruarachchi to pay Rs.100,000 as legal cost to People’s Bank.

S. A. Parathalingam PC with Kushan de Alwis appeared for the People’s Bank.(DN)