People’s Bank vs Hon. Minister of Labour – CA WRIT/256/2021-2023

In the case between People’s Bank and the Hon. Minister of Labour, Commissioner General of Labour, S.M.S. Jayawardena (Arbitrator), and H.M. Chandrapala, the court addressed whether the Arbitrator exceeded the conferred jurisdiction by granting certain reliefs—specifically, those involving compensation, interest, and promotion privileges—outside the arbitral mandate under the Industrial Disputes Act No. 43 of 1950. It was determined that, while the Arbitrator’s order regarding the return of Rs.250,000 was justified, the award of interest and compensation in lieu of promotion privileges was irrational and in excess of arbitral authority, thereby warranting judicial intervention. The court issued a Writ of Certiorari quashing reliefs No. 2, 3, and 4, reaffirming the principle that arbitral a