Sri Lanka Insurance Corporation Ltd vs Chrysantha Fernando – sllr 2005 volume 1 page 229

In the case between Chrysantha Fernando and Sri Lanka Insurance Corporation Ltd, the court addressed the issue of whether an enforcement action to execute a money decree for damages, brought against an insurer more than five years after the original decree, was time-barred under the Prescription Ordinance or permitted within the relevant limitation period. It was held that an action to enforce liability against the insurer, based on both contractual obligations under the insurance policy and statutory obligations under section 105 of the Motor Traffic Act, may be instituted within six years from the date the cause of action arose. The principle reaffirmed is that the prescriptive period for enforcing a money decree arising out of such statutory and contractual claims is six years. The deci