Seylan Bank Limited vs. Clement Charles Epasinghe & Others – SC CHC 39/06-2017

Brief
The case between Seylan Bank Limited (as plaintiff-appellant) and the 1st and 2nd defendants-respondents (a husband and wife engaged in multiple businesses including vehicle hire), concerned whether a lease agreement for a bus was properly terminated due to non-payment and whether the lease had been frustrated by alleged vehicle defects. The court held that the additional legal issues raised by the trial judge at judgment were improperly framed without allowing the parties a fair opportunity to present evidence. It was determined that the evidence did not establish frustration of the lease agreement and that the plaintiff was entitled to recover the outstanding sums due under the lease, subject to adjustments for the value of the repossessed vehicle and with a limitation on recoverab