Ceylon Carriers Ltd. v. Peiris – sllr 1981 volume 2 page 119

In Ceylon Carriers Ltd. v. Peiris, the court addressed the enforceability of an execution order stemming from a settlement agreement which required the defendant to make strict monthly payments, with automatic writs to issue upon two consecutive defaults. The central legal issue considered whether equitable doctrines concerning penalties and forfeitures apply when parties fail to strictly adhere to compromise terms, particularly when defaults are due to inadvertence by third parties such as bankers. The findings established that the arrangement is strictly enforceable, with no scope for relief through equity in cases where performance is not impossible but rather where negligence or laches exist. Precedents and statutory interpretation were relied upon to affirm the necessity of exact comp