Pallocci Donatella vs Yamuna Kanthi Stein – SC APPEAL NO 08/2017-2025

In Pallocci Donatella vs Yamuna Kanthi Stein the court addressed the issue of frustration and impossibility of performance in a lease agreement arising from a tsunami event. It was determined that the significant damage rendered the property unfit for its intended use, thereby discharging contractual obligations and entitling the lessee to a refund of lease rental. The decision relied on principles under Roman-Dutch law and relevant English precedents, reaffirming that unforeseen events which fundamentally alter the contractual framework may relieve parties from obligations.

Janak De Silva, J.: The judgment examined the lease agreement, the allocation of risks within its clauses, and the impact of the tsunami, which caused substantial damage to the property such that it could no lon