Frewin & Company Ltd. v. Dr. Ranjith Atapattu and Others – sllr 1993 volume 2 page 053

In the dispute between Frewin & Company Ltd. and Dr. Ranjith Atapattu and Others, the court addressed the liability of the petitioner to pay a Non-Recurring Cost of Living Gratuity (NRCLG) based on an alleged implied term of contract arising from the extension of a Collective Agreement. It was held that no implied contractual term could be established under the circumstances, reaffirming the principle that implied terms must arise from custom, statute, or necessary inference from contract language rather than mere conduct or mistaken belief. The decision relied on contractual law principles and statutory interpretation, determining that a Ministerial order, which formed the basis for the purported liability, was ultra vires. The key takeaway is that ministerial action exceeding statutory a