Ceylon Mercantile, Industrial and General Workers’ Union v Ceylon Oxygen Limited – CA PHC/121/17-2022

In the case between Ceylon Mercantile, Industrial and General Workers’ Union (Appellant) and Ceylon Oxygen Limited, its Directors, and the Assistant Commissioner of Labour (Respondents), the court addressed the enforceability of an arbitral award under section 40(1)(a) of the Industrial Disputes Act after repudiation of the award. It was held that criminal prosecution cannot be maintained against the employer under section 40(1)(a) following valid repudiation of the arbitral award. The decision reaffirmed that, once repudiated, an award ceases to attract criminal liability, even if rights accrued during its binding period may persist through other enforcement mechanisms. The determination was reached by analyzing statutory timeframes, the effect of repudiation under section 20 of the Act,