Pure Beverages Company Ltd. Vs. K. Dharmasiriwardena – SC CHC. APPEAL NO 24/2004-2012

In the case between K. Dharmasiriwardena and Pure Beverages Company Ltd., the court addressed whether the termination notice issued by the defendant under Clause 6 of the Exclusive Distributor Agreement was legally valid, given a minor delay in receipt and the absence of expressly stated reasons. The court held that the termination notice, served by registered post in accordance with Clause 13 and issued under the discretionary power contained in Clause 6, was valid. It was determined that the minor delay did not invalidate the notice, and that objections raised by the plaintiff were technical in nature, failing to establish substantive prejudice. The holding reaffirmed the principle that contractual notice provisions, when substantially complied with and absent demonstrable prejudice, are