Ajith Upashantha Samarasundara vs Coats Thread Lanka (Pvt) Ltd. – SC APPEAL NO 18/2009-2010

In the case between Ajith Upashantha Samarasundara (Applicant-Appellant) and Coats Thread Lanka (Pvt) Ltd. (Respondent-Petitioner), the court addressed the issue of whether the respondent’s pursuit of alternative employment during suspension constituted an implied repudiation of the employment contract under clause 16(c). The court held that while certain contract terms were breached, such conduct did not constitute automatic repudiation or abandonment, especially where participation in disciplinary proceedings was evident. The holding reaffirmed that a breach requires both a physical act and the requisite mental element, and that mere suspension without pay does not prove constructive termination. Instead, the finding established that dismissal, based on the disciplinary inquiry, was just