State Bank of India v. Edirisinghe and Others – sllr 1991 volume 1 page 397

In the case between State Bank of India (Colombo Branch) and the 3rd Respondent (ex-accountant of the Bank) and others, the court considered whether an Industrial Arbitrator’s award of pension and associated benefits to a former employee was within the arbitrator’s authority, given the employment contract and statutory constraints. The court determined that while the arbitrator possesses discretion under the Industrial Disputes Act to grant “just and equitable” awards, this discretion is tempered by the terms of employment contracts and the necessity for evidence justifying such awards. The central holding set aside the award of a pension to the respondent, upholding only the gratuity benefit, and reaffirmed that an arbitrator’s powers are not absolute when the contract specifies particula