The Associated Newspapers of Ceylon Ltd vs R.A.S Janaka – SC APPEAL 126/2022-2025

In the case between The Associated Newspapers of Ceylon Ltd and R.A.S Janaka, the court addressed the lawfulness of employment termination and the legitimacy of compensation awarded after findings of misappropriation of funds by the applicant. It was determined that the evidence demonstrated the applicant failed to remit Rs. 456,972.57 collected from customers and violated record-keeping duties, amounting to a breach of fiduciary responsibility. The central legal issue involved whether the Labour Tribunal and Provincial High Court had erred by affirming compensation and failing to adequately consider proven misconduct. The holding established that, under the Industrial Disputes Act, compensation should not be granted where dishonesty and breach of trust are substantiated, as this would und