Sri Lanka Nidahas Sevaka Sangamaya and others vs Ceylon Steel Corporation Limited and others – CA WRT 0249/21-2025

In the matter between Sri Lanka Nidahas Sevaka Sangamaya and Jathika Sevaka Sangamaya (petitioners) and Ceylon Steel Corporation Limited (1st respondent), the court addressed issues of contractual obligation, legitimate expectation, and implied terms concerning bonus payments. The court held that the 1st respondent company was not contractually bound by agreement A-4, that representations made by the company did not create a clear and unambiguous legitimate expectation, and that the bonus formula A-4(a) had not become an implied condition of employment. The decision reaffirmed the principle that a party cannot assert both a contractual right and a legitimate expectation on the same matter, and that representations must be unequivocal to establish a legitimate expectation. This decision rel