Dr. P.B. Jayasundara vs Acland Insurance Services Limited – SC CHC APPEAL 44/2012-2025

The Court addressed whether the State, through the Secretary to the Treasury, held a 6% share capital of NIC Limited “in trust” for the Plaintiff and was therefore liable to compensate for the share value following the conversion and privatization of public enterprises. It was held that no legal obligation existed for State compensation after the relevant conversion and privatization transactions, as the full and final settlement involving share transfer concluded the matter. The principles reaffirmed included the correct application of the Conversion Act No. 23 of 1987 and standards under Section 187 of the Civil Procedure Code relating to judicial reasoning. Reliance was placed on legislative provisions regulating the transition of public corporations to private companies. The case clari