Don Wimal Wijesuriya and Don Saman Dharmasri Wijesuriya v. Panadura Pradeshiya Sabha – CA CASE NO: RII/12/19-2022

In the case between Don Wimal Wijesuriya and Don Saman Dharmasiri Wijesuriya (Plaintiff-Respondents) and Panadura Pradeshiya Sabha (Defendant-Petitioner), the court addressed the enforceability of a settlement agreement (“P20”) purportedly entered into by a local government official lacking requisite authority. It was held that the settlement, executed during an interim administrative period following the expiry of Sabha members’ terms, did not bind the Sabha where proper legal authority was absent. The principle reaffirmed is that administrative continuity under statutory frameworks preserves legal personality, but does not extend to ultra vires acts absent express delegation or authorization. Reliance was placed on statutory construction of Sections 8, 9(2), and 9(3) of the governing Act