Sri Lanka Co-operative Marketing Federation Ltd. Vs. Ambewela Livestock Co. Ltd. – SC CHC – APPEAL NO. 54/2007-2014

Brief
In the case between Ambewela Livestock Co. Ltd. (Ambewela Farm, Ambewela) and Sri Lanka Co-operative Marketing Federation Ltd. (Markfed), the court addressed the existence of a valid and enforceable contract for the supply of 100 Metric Tons of potato seedlings valued at Rs.7 million. It was held that sufficient documentary evidence substantiated the formation of a legally binding agreement, and the plaintiff’s right to recover Rs.4,694,000/– was affirmed. The purported novation of the contract asserted by the defendant was found to lack evidentiary support, and claims of prescription based on the plaintiff’s change in legal status were rejected. The judgment relied on established legal principles regarding contract formation and requirements for novation, and affirmed the lower cour