Sri Lanka’s Nawaloka Hospital Plc, said the Court of Appeal had issued an interim order on February 28, preventing Hatton National Bank Plc from taking parate action against its subsidiary, Nawaloka Hospitals PLC.
“New Nawaloka Medical Centre (Pvt) Ltd had filed action in the Commercial High Court on 17.05.2023 bearing Case No. CHC 118/23 MR requesting inter alia an Injunction against the proposed auction of the mortgaged property, i.e. part of the premises of the Nawaloka Hospital complex in Colombo 02, by Hatton National Bank PLC,” it said in a stock exchange filing.
The Court refused the requested injunction on February 22, but the Court of Appeal had issued an interim order.
“On 28.02.2024, the Court of Appeal in CA RII-0024-24 issued an Interim Order preventing inter alia Hatton National Bank PLC from auctioning the property and/or leasehold rights of the property in issue,” the healthcare provider said.
“In the circumstances, Hatton National Bank PLC now cannot proceed with parate execution, as the status quo that prevailed prior to the Order of the Commercial High Court on 22.02.2024 has been restored.”
This week Sri Lanka’s Cabinet of Ministers approved a proposal by President Ranil Wickremesinghe to amend the country’s loan recovery law and halt auctioning of defaulted loans till December 15.
Source: economynext
