Ramasamy v. British Ceylon Corporation – sllr 1991 volume 1 page 231

In the case between the appellant (a workman and former Managing Director) and British Ceylon Corporation, the court addressed the issue of whether a respondent-company’s liabilities under an employment contract and a Labour Tribunal order vest in the Government following the vesting of the business undertaking by virtue of the Business Undertakings (Acquisition) Act No. 35 of 1971. It was held that the respondent-company’s liabilities arising from the contract and Labour Tribunal proceedings are not extinguished by the vesting order; rather, such liabilities are mandated by the legislature to vest in the Government. The principle reaffirmed is that the discharge of such liabilities is governed by Sections 4(1) and 17 of the Act, which collectively provide for the vesting and coverage of l