Seelawathie v. Ediriweera – sllr 1989 volume 2 page 170

In the case between Seelawathie (Plaintiff) and Ediriweera (Defendant), the court addressed the issue of whether a tenant’s continued occupation of leased premises after notice of transfer and the transferee’s election to recognize the tenant establishes privity of contract, effectively creating a landlord–tenant relationship under Section 37 of the Rent Act. It was determined that the tenant’s continued possession following such notice amounted to an exercise of the option to become the transferee’s tenant, regardless of any refusal to formally attorn. The findings established that upon continued occupation after the requisite notice, the tenant became bound under the new tenancy from 15.11.74, authorizing the transferee to claim rent, damages, and seek ejectment. The principle reaffirmed