Shakila Nayana Kumari v. Kalyani Rajapaksa – SC APPEAL NO. 70/17-2021

In the case between Pannipitiya Medical Services (Pvt.) Ltd. and Nadeeka Udayani Dharmapala, the court addressed whether a service contract requiring a 24‑month training programme, five‑year service obligation, and liquidated damages upon early termination was properly executed by the Plaintiff. The court determined that the Plaintiff failed to provide the formal training programme and required assessments mandated by the contract, thus breaching its contractual obligations. It was established that the Defendant was thereby discharged from further service obligations and not liable for liquidated damages. This decision reaffirmed the contractual principle that a party seeking to enforce liquidated damages must first fulfill all material obligations under the contract. The ruling emphasized