Ran Malu Fashions (Private) Limited vs Wallabha Jayathissa Liyanage Upali Wijayaweera – SC APPEAL NO. 210/2016-2021

In the case between Ran Malu Fashions (Private) Limited and Expolanka Freight (Private) Limited, among other parties, the Supreme Court addressed the classification of a statutory compensation claim issued under the Termination of Employment of Workmen (Special Provisions) Act No. 45 of 1971 (TEWA) in the winding-up proceedings of Ran Malu Fashions (Private) Limited. The central issue considered was whether the compensation claim constituted a “preferential claim” or should be treated as an unsecured debt under the Companies Act No. 07 of 2007, having particular regard to the Ninth Schedule, item 2(g), relating to “other statutory dues payable to any employee.” The findings established that compensation claims under TEWA fall within this statutory preference and must therefore be paid in p