Commercial Leasing Company Ltd. vs Naurunna Badalge Princy Sujatha and Others – SC CHC APPEAL 06/2011-2011

In the case between Commercial Leasing Company Ltd. (Plaintiff-Respondent) and Naurunna Badalge Princy Sujatha, Indrajith Bandula Dickson Jayasinghe, and Liyana Gunawardhana Sunil (Defendant-Appellants/Defendant-Respondent), the Supreme Court addressed the issue of liability arising from a financial lease agreement for a vehicle. It was determined that the termination of the lease by the plaintiff was justified due to non-payment of lease rentals, and that obligations under the guarantee and indemnity furnished by the defendants remained enforceable. The decision reaffirmed the contractual principles governing lease termination on grounds of default, relying on the lease agreement, letters of demand, and a statement of account as evidence. The import of the ruling establishes the enforceab