Operation of the Arbitration Act in Sri Lanka
Arbitration, as a dispute resolution mechanism, is often hailed for its flexibility and enforceability. However, its effectiveness under the Arbitration Act No. 11 of 1995 in Sri Lanka has come under scrutiny. This analysis examines the intent, application, and perceived shortcomings of the Act while offering a roadmap for improvement. Historical Context Sri Lanka boasts…
The Banking System and Depositor Protection
Building trust among investors, both domestic and foreign, is essential for a strong financial system. A robust banking regulatory framework ensures banks are closely monitored, laws are strictly enforced, and failing institutions are either rehabilitated or removed from the system promptly. Such measures strengthen the financial system, maintaining its health and fostering growth. Key Challenges…
Liability of an Auditor in Delict
Auditing is a professional service where an auditor examines the financial accounts of a business entity to form and express an opinion on their accuracy, truth, and fairness. This process results in an audit report, a critical document that establishes legal relationships between various parties. The role of an auditor is governed by professional ethics…
Competition Law in Sri Lanka: An Overview
Competition law, often referred to as antitrust law, is a crucial aspect of ensuring fair market practices and preventing anti-competitive behavior in the corporate sector. Globally, such laws regulate monopolistic practices, abuse of dominant market positions, and mergers that reduce competition, thereby safeguarding consumer interests and promoting economic efficiency. Sri Lanka joined this global movement…
Crime and Security in Cyberspace
The rise of cyberspace as a “network of networks” has revolutionized communication, commerce, and content dissemination. However, its rapid proliferation has exposed vulnerabilities, leading to the emergence of cybercrime as a significant global challenge. This article delves into the complexities of cybercrime, the legislative responses, and the transnational dimensions of ensuring security in cyberspace. The…
An Overview of Debt Recovery Laws in Sri Lanka
Lending money and giving loans, also called “commercial credit,” are crucial for business and economic growth. Lenders usually require “security” from borrowers, which is a legal claim on property to ensure repayment. Lenders, including banks and financial institutions, support the economy by providing funds for businesses and individuals. To protect these institutions, governments have created…
New Bill for the Amendment of the Companies Act
New Bill for the Amendment of the Companies (Amendment) Act, No. 07 of 2007, presenting several key amendments. Below is an analysis and summary of the critical changes: Key Amendments: These amendments primarily aim to enhance transparency, accountability, and regulatory compliance, ensuring that the Companies Act is aligned with international standards and modern business practices.…
Res Judicata and Estoppel
Case Title: Azem Morina v. Saman Weranjan Kasthurirathna and Tea Masters Ceylon (Pvt) Ltd Case Number: SC CHC Appeal 10/2015 Court: Supreme Court of Sri Lanka 1. Case Overview: Parties Involved: Nature of the Case: This case concerns a failed commercial transaction involving the export of tea. The Plaintiff-Appellant sought to recover funds remitted to the Defendants-Respondents, along with…
Failure of Consideration and Breach of Duty of Care
This report analyzes the Supreme Court appeal concerning a dispute between the Hong Kong and Shanghai Banking Corporation Limited (“Respondent”) and Pratap Shyam Sunder Singh (“Appellant”). The case revolves around a housing loan agreement, default on repayment, and claims of negligence and breach of duty of care. SC (C.H.C.) Appeal No. 62/2012 Key Facts Issues…
Misapplication of the burden of proof
This appeal was filed to challenge the conviction and sentence imposed by the High Court of Matale on the appellant for the offense of rape of a girl under 16 years of age. The High Court had convicted the appellant despite numerous inconsistencies in the evidence of the prosecution witnesses and alleged procedural errors. Case…
Balancing Legal Enforcement and Justice: Analysis of the NATA Act Revision Case
1. Case Background Court of Appeal Case: CA/PHC/APN/0086/2023 Petitioner: D.S. Gunasekara (Pvt) LtdRespondents: Court: Court of Appeal of the Democratic Socialist Republic of Sri LankaNature of Application: Revision under Article 138 of the Constitution Core Issue: The petitioner sought to challenge the decisions of the Magistrate’s Court of Anuradhapura and the Provincial High Court, which refused…
Cancellation of the registration of Craig Estate Tea Factory
1. Case Background Petitioner: Maskeliya Plantations PLCRespondents: Sri Lanka Tea Board, Jayampathy Molligoda (Chairman), Anura Siriwardena (Director General), E.A.J.K. Edirisinghe (Tea Commissioner) Court of Appeal Case: CA (Writ) Application No. 337/2020 Court: Court of Appeal of the Democratic Socialist Republic of Sri LankaNature of Application: Writs of Certiorari and Prohibition under Article 140 of the Constitution…
Arbitration and Public Policy
Judicial Analysis of Supreme Court Appeal No. 155/2023: Arbitration and Public Policy Background of the Case: This case pertains to an appeal filed by the Respondent-Petitioner-Appellant, Ceylon Electricity Board (CEB), challenging an arbitral award dated October 29, 2013. The arbitral award was in favor of the Claimant-Respondent-Respondent, Heladhanavi Limited. The matter concerns a Power Purchase Agreement…
Mismanagement of collapsed finance companies under the Ceylinco Group
Case: S.C. (FR) Nos. 263/2009 and 262/2009 Parties Involved: Case Background: The case arose out of the collapse of several finance companies under the Ceylinco Group, resulting in substantial financial losses for depositors. The Petitioners alleged fraudulent practices by company directors and managers, including mismanagement of funds, misleading depositors, and failing to uphold fiduciary duties.…
Defects of the Appeal filed in the name of a deceased person
1. Case Background Plaintiff-Appellant: Domingo Hewage GunapalaSubstituted Plaintiff-Appellant-Respondent: Domingo Hewage Premachandra2nd Defendant-Respondent-Petitioner: Upali Gunasekera (substituted by Palm Paradise Cabanas (Pvt) Limited) Court: Supreme Court of the Democratic Socialist Republic of Sri LankaCase Origin: District Court of Tangalle (Case No. 2218/P) Core Issue: The appeal was brought before the Supreme Court challenging a judgment of the Court…
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