Watawala reaps results in hard-fought battle in Court

The legal dispute between Watawala Plantations PLC and the Defendants, Legion Sourcing Ltd. and Lippakelle Plantations Ltd. arising from a Sub-Lease Agreement of Lippakelle Estate was concluded after 12 years of litigation. 

The Plaintiff, Watawala instituted action in the Commercial High Court in 2008 after Legion being the sub-Lessee abandoned the Estate compelling Watawala to terminate the sub-lease agreement and take over the management of the Estate reviving it to its original state. 

Entering Judgement in favour of Watawala, High Court Judge Rathnapriya Gurusinghe, held that the Defendants are in breach of the sub-lease agreement. The judgement thereafter holds that the Plaintiff must be compensated for the loss suffered on account of the Defendants’ breach. 

In assessing the Plaintiff’s loss and awarding damages the Judge has taken into account the principle that the award of damages for breach of contract should not put the claimant in a better position than he would have been in had the contract been performed by the Defendants, as anticipated. The Plaintiff has therefore been awarded unpaid outstanding lease rental as well as unpaid statutory dues. 

The judgement further holds that the termination of the sub-lease agreement by the Watawala is lawful on the basis that the Defendants have mismanaged and abandoned the estate compelling the Plaintiff to take over possession of it. The judgement takes cognisance of the extensive evidence lead on behalf of the Plaintiff through several witnesses in successfully proving their case. 

The Defendants’ counter claim of loss and damages incurred as a result of the termination of the sub-lease agreement on the other hand has been rejected in its entirety on the basis that the Defendant has not substantiated their claim sufficiently though the evidence lead in court. 

Avindra Rodrigo P.C. with Rozali Fernando instructed by F.J & G de Saram appeared for the Plaintiff while Ronald Perera P.C. with Dinesh Vidhanapathirana appeared for the Defendants.