M/s Singer Industries (Ceylon) Ltd vs The Ceylon Mercantile Industrial & General Workers Union (CMU) – SC APPEAL 78/08-2010

In the case between M/s Singer Industries (Ceylon) Ltd (Petitioner/Appellant) and The Ceylon Mercantile Industrial & General Workers Union (CMU) and others (Respondents), the Supreme Court addressed whether a binding agreement existed for payment of enhanced gratuity above the statutory minimum under the Payment of Gratuity Act. The dispute centered on the validity of the arbitrator’s award that directed payment of ¾ of a month’s salary per year of service beyond 20 years, and whether the Court of Appeal rightly upheld that award. It was determined that no conclusive agreement had been reached during collective bargaining, as proposals and counter-proposals did not culminate in clear acceptance, affirming the contract principle that a binding agreement requires unequivocal acceptance of an