Arpico Finance Company Limited vs. Jayasinghe Chandrakeerthi Jayasinghe & Chrishani Renuka Jayasinghe – SC APPEAL 107/2017-2023

In the case between Arpico Finance Company Limited (now known as Associated Motor Finance Company PLC) and Jayasinghe Chandrakeerthi Jayasinghe and Chrishani Renuka Jayasinghe, the court addressed whether, following termination of a commercial lease due to payment default, the plaintiff was entitled to recover the total rent payable for the full lease term or only damages for loss of future profits. It was held that the contractual terms provided an unconditional right for the lessor to demand the total outstanding rental sum upon default, irrespective of termination, reaffirming the principle that liquidated damages stipulated in a lease can be compensatory rather than punitive. This decision relied on the parties’ agreed terms—specifically, Article 5 of the Lease Agreement—and establishe