Seylan Bank PLC vs Wahalatantirige Maxwell Vijaya Perera – CA/WRIT/88/2019-2024

In the case between Seylan Bank PLC and the Commissioner General of Labour, R. N. Ranawaka (Assistant Labour Commissioner), Sarojini Tissera (Labour Officer), and Wahalatantirige Maxwell Vijaya Perera, the court addressed the issue of whether Seylan Bank PLC was obligated to pay an enhanced gratuity over the statutory gratuity mandated by the Payment of Gratuity Act, as referred to in a previous Board memorandum. It was held that the imposition of the enhanced gratuity by administrative direction was not legally enforceable in light of both the financial crisis faced by the bank and a subsequent Board decision that revoked such enhanced terms. The findings established that the enhanced gratuity was exgratia and not a binding contractual right. The decision relied upon statutory interpretat