G. H. Eheliyagoda and two others v. Janatha Estates Development Board and others – sllr 1982 volume 1 page 114

In the case between G. H. Eheliyagoda and two others (plaintiffs) and the Janatha Estates Development Board and others (defendants), the court addressed the legality of the defendants’ re-organization of employment, which resulted in the demotion of the petitioners from their positions as Assistant Branch or Branch Managers. It was held that the reclassification and consequential demotion were executed without adequate guidelines and standards, constituting arbitrary exercise of discretionary power and infringing the petitioners’ rights under Article 126 of the Constitution. The decision reaffirmed the principle that discretionary administrative power must be exercised with fairness, transparency, and proper procedural safeguards, relying on documentary evidence as well as persuasive India