Distilleries Company of Sri Lanka PLC vs Censtar International (Pvt) Ltd – SC CHC Appeal 31/2009-2025

In the matter of Distilleries Company of Sri Lanka PLC and Censtar International (Pvt) Ltd, the court addressed the issue of contractual liability for goods sold and delivered. The court held that the Appellant was liable to the Respondent for Rs. 17,982,358.38 based on an express acknowledgment of liability and the absence of a tripartite agreement. The court reaffirmed the principle that a clear acknowledgment of debt establishes a valid and enforceable contract. This decision relied on the interpretation of document P8 as an unequivocal commitment and the lack of evidence supporting a tripartite arrangement or the Appellant’s claims in reconvention, emphasizing that civil obligations between parties are determined by their direct agreements, irrespective of external dealings.

K. KUMU