Ratwatte v. Goonesekera – sllr 1987 volume 2 page 260

In the case between a shareholder-director of Consolidated Commercial Agency Ltd. (plaintiff) and another party including the defendant, the court examined whether the transfer of shares could be set aside on grounds of laesio enormis and undue influence. The court determined that persistent commercial persuasion by the defendant and his associates, absent any fiduciary relationship or actual coercion, did not constitute undue influence. It was further held that the doctrine of laesio enormis, traditionally applicable to land and specific movables under Roman-Dutch law, does not extend to shares due to their unique legal character as choses in action. The decision clarified the limitations on these doctrines and allowed the appeal, thereby dismissing the plaintiff’s action.

Sharvananda C.