Loku Galappaththige Susantha and Ariyawathi Galappaththi vs Kalutota Investment and Leasing Limited – SC CHC APPEAL NO: 48/17-2024

The case between Loku Galappaththige Susantha and Ariyawathi Galappaththi and Kalutota Investment and Leasing Limited involved the interpretation of a lease agreement for a Mitsubishi Pajero Jeep and related issues concerning the computation of compound interest and claims of unjust enrichment. It was determined that, under modern legal interpretations, the charging of compound interest within the lease framework was lawful and that, due to the appellants’ default and retention of the vehicle beyond the contractual term, claims of unjust enrichment could not be sustained. The decision reaffirmed the binding contractual provisions and underscored that contractual breaches precluded any recovery based on unjust enrichment, with costs awarded in favor of the respondent.

K. Priyantha Fern