The State Trading Corporation of India vs. Sri Lanka Co-operative Marketing Federation Ltd. – SC CHC APPEAL 03/2009-2024

In the case between The State Trading Corporation of India (plaintiff-respondent) and Sri Lanka Co-operative Marketing Federation Ltd (defendant-appellant), the court addressed the recovery of USD 130,000 arising from a consignment of dried chilies and the interpretation of the underlying contract terms. It was held that the transaction was governed by a written contractual agreement, thus the claim was not prescribed under Section 6 of the Prescription Ordinance. Key legal reasoning established that the evidence, including written correspondence and witness testimony, refuted the defendant’s claims regarding non-acceptance of goods and delays in clearance. The appeal was dismissed with costs, reaffirming the principle that actions based on written contracts are not prescribed within the p