IN THE COURT OF APPEAL OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA In the matter of an application for Restitutio-in-Integrum and Revision under Article 138 of the Constitution of the Democratic Socialist Republic of Sri Lanka.

Court of Appeal Case No:

CA/RII/46/2024 D.C. Colombo Case No :

DRE (S)/37/2023 1. Ceynor Foundation Limited No. 90, (335), D.R. Wijewardena Mawatha, Colombo 10.

Plaintiff -Vs-

1. Orient Pearl Hotels Limited No.42, Barns Place, Colombo 07.

Defendant AND NOW BETWEEN

1. Orient Pearl Hotels Limited No.42, Barns Place, Colombo 07.

Defendant-Petitioner -Vs-

1. Ceynor Foundation Limited No.90 (335), D.R. Wijewardena Mawatha, Colombo 10.

Plaintiff-Respondent Before: Hon. D.N. Samarakoon, J.

Counsel: Upul Jayasuriya P.C. with P. Radhakrishnan for the Defendant-

Petitioner.

Faizer Musthapha P. C. with Saheeda Barrie, Hiran Careem and Amila Perera for the Plaintiff-Respondent.

Argued on: 26.04.2024 Written submission tendered on: tendered by 03.05.2024 Decided on: 10^.05.2024 D. N. Samarakoon J., There is no dispute, that, the defendant petitioner has been the tenant of the plaintiff respondent for some time.

The defendant petitioner is Orient Pearl Hotels Limited. The plaintiff respondent is Ceynor Foundation Limited.

Case No. DRE (S) 37 2023 has been instituted on 24.07.2023.

That is on the Recovery of Possession of Premises Given on Lease Act No. 1 of

2023.

The petitioner says, that, (i) During the pendency of the case, the respondent wrote A.17 dated

03.11.2023 That letter says, “Regarding the New Lease agreement between Ceynor Foundation and Ceynor Seafood Restaurant This letter is reference to the letter dated 06.10.2023.

After evaluating the proposal sent by you, we are agreed to lease you the land for 33 years based on the lease agreement. As you have agreed, the amount of Rs.7,560,000/= should be deposited to our Account and sent the payment receipt before 06th November 2023 (Monday) at 12.00 PM. We will only be able to make the New Agreement once we received the payment receipt from you. Further, you should be able to pay the calculated penalty amount (Rs.5000/- per day) right before signing the Agreement. Please note that the new Agreement will be enforced with effect from 01st December 2023.

Moreover, I would like to state that we have come to this decision of extending the lease agreement with you, based on your prediction which denoted that you have involved in the tourism industry which directly contributes to strengthen the Economic sector of Sri Lanka. Accordingly, depending on that factor, we will lease the land based on the Government valuation instead of Commercial valuation. [Emphasis added in this judgment].

Furthermore, please note that we are able to lease the land, if you continue your business adhering to the conditions included in previous Agreement signed between Ceynor Foundation and Orient Pearl Hotels Ltd. If we ever found that you have violated the prevailing conditions and existing laws, the board of directors have the power to take a decision to terminate the Agreement.

Kindly note that, if you are unable to response, [This word appears so in A.17] for this letter by 06th November 2023 (Monday) at 12.00 PM, we will continue legal proceedings against you, by considering that you have disregarded this letter”.

(ii) The position of the petitioner is that this offer was accepted by letter A.18 dated 06.11.2023.

It said, “Re: Payment of rental arrears and Proposal for further Development of the project and the continuation of the possession in the Premises under the terms of the new agreement and by leave and license of your Company.

We are in receipt of Your Letter dated 19/09/2023 subsequent to the discussions and agreement between us and your respective institution.

We are pleased to accept the offer to consider us as the lessee for a further periodand decision to receive the arrears of the rental for the premises and thus We are grateful for the opportunity to be considered as the lessee for an extended