Peoples’ Bank v. Lanka Banku Sevaka Sangamaya – SC APPEAL 106/2012-2015

In the case between Lanka Banku Sevaka Sangamaya (on behalf of EAA Dayananda) and Peoples’ Bank, the Court addressed whether a workman, dismissed for repeatedly issuing cheques without sufficient funds and thereby found guilty of misconduct, could be awarded compensation despite the justified disciplinary measures. It was held that granting compensation to an employee whose dismissal was based on proven acts of dishonesty would undermine the fundamental principle of maintaining strict disciplinary standards within the banking sector. The Court relied on relevant precedents involving misconduct and labour law, underscoring that furnishing compensation in these circumstances would set a detrimental precedent and compromise public trust in financial institutions.

Sisira J De Abrew J. — The