Kirihamige Ratnayake vs Mercantile Credit Ltd. – CA 798/96 F -2011

In the case between Mercantile Credit Ltd. (plaintiff-respondent) and Kirihamige Ratnayake (1st defendant-appellant), the court addressed the issues of liability under a hire purchase agreement following the default of installment payments, the applicability of contractual frustration due to terrorist activities affecting the use of the vehicle, and the question of whether the District Court of Colombo had jurisdiction over the dispute. It was held that the 1st defendant-appellant remained liable for outstanding payments, as contractual frustration was not established and the court at Colombo had jurisdiction, given the contract specified payments to be made at the plaintiff’s place of business in Colombo. The legal principles reaffirmed included the requirement that, absent express provis