Debt Recovery, Evidentiary Value of Bank Statements, and Admissions by Silence in Commercial Disputes
Debt Recovery, Evidentiary Value of Bank Statements, and Admissions by Silence in Commercial Disputes Pasan Madanayake vs. DFCC Bank PLC SC/CHC/Appeal No.38/2023 Decided On: 26.03.2026 . HELD: The Supreme Court affirmed the judgment of the Commercial High Court in favor of the Plaintiff Bank . The Court held that a certified copy of an entry in a banker's book is admissible as prima facie evidence under Section 90C of the Evidence Ordinance . Furthermore, in business matters, the failure to reply to a formal letter of demand asserting a state of facts amounts to an admission of those facts . The Court also distinguished between statutory parate execution and voluntary commercial conveyances, holding that once properties are transferred to settle a debt via a valid deed, the debtor cannot subsequently claim the bank was acting as an agent obligated to refund excess proceeds . Introduction In the complex realm of commercial banking and debt recovery,...