M. M. S. Malkanthi Jayasinghe and others Vs. S. A. Bandula Perera and others – CA NO. 1309/98-1998

In the case between M. M. S. Malkanthi Jayasinghe, A. R. M. Joshuwa (Plaintiffs-Appellants), and S. A. Bandula Perera (substituted by legal representatives), Nekath RaIlage Muthumenika, and others (Defendants-Respondents), the central issue concerned whether the prior District Court judgment dated 25.09.1998 should be set aside in light of a subsequent settlement between the parties. It was determined that the appeal should be allowed based on a mutually executed and acknowledged settlement agreement, directing that the earlier District Court judgment be vacated and a fresh decree be entered per the parties’ agreement. The holding reaffirmed the principle that court orders and decrees may be varied or set aside upon recording a lawful settlement between the parties, facilitating the effect