Ceylon Electricity Board vs Hon. W.D. Seneviratne Minister of Labour, and others – CA Writ 125/2016-2025

In the matter of Ceylon Electricity Board and Hon. W.D. Seneviratne (Minister of Labour) et al., the court addressed the lawfulness of an arbitration award granting pension benefits contrary to established rules and the validity of such awards when based on prior unlawful administrative actions. The court held that unlawful prior grants cannot create legitimate expectation or equal treatment rights, and that an arbitration award made on such a basis is ultra vires. This decision reaffirmed the principle that administrative actions must conform to statutory rules and regulations, and that established rules cannot be circumvented by reference to prior irregular practices, emphasizing the importance of public finance and sustainability in administrative decision-making. The court also conside