227 Depositors Challenge Monetary Board Ruling On Pramuka Bank

Two more cases were filed in the appeal court yesterday, by 227 depositors of Pramuka Bank, challenging the decision of the Central Bank Monetary board to cancel the banking licence of Pramuka Savings and Development Bank. This follows a case filed last Thursday by six depositors.

The petitioners allege that the cancellation has been made without resorting to the proper steps provided for by the Banking Act to protect the interests of depositors and creditors of the bank.

One of these cases has been filed by 226 desperate depositors. This case is to be supported by M.A. Sumanthiran with Prasanna Bandaranayake and Rasika Balasuriya instructed by Samanthi Kumarasinghe.

The other case, filed by two other depositors is to be supported by Viran Corea instructed by Dilka Hewage, states that apart from themselves, there are many depositors who are very harshly affected by the actions taken by the Monetary Board, as well as A. S. Jayawardena (Governor). P.M. Nagahawatte (Deputy Governor) and P.P. Sirisena (Director Bank Supervision) of the Central Bank. Fourteen depositors are reported to have suffered strokes at the thought of being unable to recover their monies deposited in the 5th Respondent Pramuka Bank.

The petition states that in the given situation, many of the depositors and creditors of Pramuka are faced with grave financial hardships and constraints which prevent them from even obtaining proper assistance to bring their grievances to a Court, which in turn effectively prevents them from exercising their fundamental right to invoke the jurisdiction of Court to obtain redress.

The petitioners in the second case argue that apart from themselves thousands of other depositors and creditors of Pramuka Bank are also legally entitled to the reliefs which are sought by the depositors.

Among the several reliefs sought by the Depositors, is an order to prevent the Central Bank from proceeding with the process of winding up of Pramuka consequent to the challenged cancellation and /or to stop any steps being taken based on the said cancellation.

They have also requested Court to issue an order restraining the Central Bank from proceeding with the process of winding Pramuka Bank subsequent to the challenged cancellation and until the final determination of the cases.