Kotagala Plantations Limited vs M.R. Ranasinghe – SC APPEAL NO:54/2010-2012

In the case between Kotagala Plantations Limited (the employer) and M.R. Ranasinghe (the employee), the court addressed whether compensation could be awarded to an employee whose own misconduct resulted in dismissal. It was determined that an employee dismissed following a justified finding of misconduct is not entitled to a compensatory award, even where the High Court, while affirming the fairness of the dismissal, had initially ordered compensation citing special circumstances. The decision reaffirmed the principle, articulated in Saleem v Hatton National Bank and relevant English law, that contributory fault excludes the right to compensation on dismissal. The appeal was allowed, the High Court’s order awarding compensation was set aside, and the Labour Tribunal’s decision was affirmed