Court allows Hatton National Bank to sell Navaloka Hospital.

Colombo Commercial High Court Judge Jagath Kahandagamage has lifted the restraining order that had been issued preventing the sale of Navaloka Hospital to Hatton National Bank due to non-payment of bank loans amounting to 63 crore rupees.

Pointing out that the manner in which a restraining order has been issued preventing the sale of Nawaloka Private Hospital is problematic, the Commercial High Court judge accepted a request made by lawyer Priyantha Alagiyawanna and removed the relevant restraining order.

After considering a petition submitted by Navaloka Hospital against Hatton National Bank, the court had issued a restraining order preventing the sale of the private hospital in question.

Hatton National Bank filed objections requesting the removal of the prohibition order and the lawyer representing the bank, Priyantha Alagiyawanna, pointed out that the bank loan of nearly 63 crore rupees taken from Hatton National Bank for the payment of the money spent on the construction of the private hospital was not paid.

Counsel Priyantha Alagiyawanna pointed out that the board of directors of the bank has taken a decision to sell the Nawaloka private hospital and its premises, which were kept as collateral while taking the loan, and collect the loan money and the related interest due to the petitioner’s private hospital company not paying the loan money and the related interest from its bank. It was also said that the arrangements have been made according to the Special Provisions for Recovery of Loans Granted by Banks Act (Parate Act).