Distilleries Company of Sri Lanka Limited v. P.D.A. Gunawardena – SC APPEAL 125/2014-2023

In the case between Distilleries Company of Sri Lanka Limited (now Distilleries Company of Sri Lanka PLC) and P.D.A. Gunawardena, the court addressed the entitlement to 11,606 bonus shares and associated dividend payments, as well as the duration over which such dividends were claimable and the eligibility for damages. The holding established that the defendant is entitled to dividends on the bonus shares without restriction to a specific timeframe set by the lower courts, while confirming that damages are not recoverable. This decision reaffirmed the principle that beneficial entitlements arising from ownership of shares subsist for the entire relevant period and should not be arbitrarily limited, unless explicitly provided by law or contract. The reasoning relied on the evaluation of Dis