Alliance Finance Company Ltd. vs Nuwarapassa Padiduralage Gunendra – CA NO. 714/96-2011

The case between Alliance Finance Company Ltd. (Plaintiff) and Nuwarapassa Padiduralage Gunendra, Kottearachchige Matinas Samsan Perera, and Muthumuni Karunawathie (Defendants) addressed the issue of whether the 1st and 3rd Defendants were liable under a hire purchase agreement when they claimed that the financed vehicle was stolen by terrorists and not properly insured by the Plaintiff. It was held that liability under the agreement remained as the alleged theft was not proven and there was no evidence that the Plaintiff was notified of it. The established principle reaffirmed was that the burden of proving theft and notifying the finance company falls on the Defendants to absolve liability. The decision relied on an assessment of evidentiary failure and underscored that absence of proof