K.M. Prabath v. Ceylinco Insurance Company Ltd. – CA L.A 394/2006-2006

In the case between K.M. Prabath and Ceylinco Insurance Company Ltd., the court addressed the issue of whether the plaintiff’s insurance claim was time-barred under Clause 18 or permitted under Clause 20 of the insurance policy. It was held that the determination of which clause applied required a resolution of disputed facts, specifically whether fraud existed in the claim, which could only be properly adjudicated at trial. The principle reaffirmed is that preliminary legal issues hinging on unresolved factual disputes should be decided upon the presentation of evidence at trial. Reliance was placed on precedents such as Jagath Sooriyarachchi v. Laksiri Peiris, emphasizing that factual disputes preclude summary determination of legal questions. The impact of this decision is to ensure tha