IN THE SUPREME COURT OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA In the matter of an appeal in terms of Chapter LVIII and in particular in terms of Section 754 (1) of the Civil Procedure Code read together with the provisions Section 5 and 6 of the High Court of Provinces (Special Provisions) Act No.

10 of 1996 against the Judgment of the Learned High Court Judge of the Commercial High Court of Colombo delivered on 12.12.2006.

1. S. Albert

2. A. Chakravarthy 3. A. Muralitharan

4. A. Muthukumaran

5. Miss N. Vadivuvathi

6. Miss T. Usha

7. Miss Susila Amal 8. Miss C. Ponmalar

9. Miss M. Pon Niraajan All of No. 22, Lind Main Road, Kattoor Gardens, Kottoorpuram, Chennai No. 85, carrying on business in partnership in India under the name and style of S. Albert & Company duly registered in India. The Head Office situated at No. 75, Yavun Rajah Street, Tuticorin G. 628001 and the Branch Office situated at 13/1, Vanels Road, Egmore, Chennai.

S.C. (CHC) Appeal No. 04/2007 Plaintiffs HC/Civil/183/2002 (1)

Vs.

S. Sivakumar, Carrying on business in sole proprietorship under the name and style of “Udaya Enterprises” at P-168, 5^th Cross street, Colombo

11.

Presently S. Sivakumar, No.88, Wasala Road, Colombo 13 Defendant AND NOW BETWEEN

1. S. Albert

2. A. Chakravarthy 3. A. Muralitharan

4. A. Muthukumaran

5. Miss N. Vadivuvathi

6. Miss T. Usha

7. Miss Susila Amal 8. Miss C. Ponmalar

9. Miss M. Pon Niraajan All of No. 22, Lind Main Road, Kattoor Gardens, Kottoorpuram, Chennai No. 85, carrying on business in partnership in India under the name and style of S. Albert & Company duly registered in India. The Head Office situated at No. 75, Yavun Rajah Street, Tuticorin G. 628001 and the Branch Office situated at 13/1, Vanels Road, Egmore, Chennai.

Plaintiff-Appellants Vs.

S. Sivakumar, Carrying on business in sole proprietorship under the name and style of “Udaya Enterprises” at P-168, 5^th Cross street, Colombo

11.

Presently S. Sivakumar, No.88, Wasala Road, Colombo 13 Defendant-Respondent Before: S. Thurairaja, P.C., J.

A.L. Shiran Gooneratne, J.

Janak De Silva, J.

Counsel:

Kushan De Alwis, P.C. with Kaushalya Nawarathna and Sashendra Mudannayake instructed by K. Upendra Gunesekara for the Plaintiff-Appellant N.R. Sivendran with Ms. U. Kalehewatta Thavenesan and Fernando Attorneys-at-Law for the Defendant-Respondent Written Submissions tendered on:

11.06.2012 and 15.03.2022 by the Plaintiff -Appellants

27.04.2012 and 07.03.2022 by the Defendant-Respondent Argued on: 21.02.2022 Decided on: 23.01.2023 Janak De Silva, J.

This appeal arises from the judgment of the Provincial High Court of the Western Province (Exercising Original Civil Jurisdiction) Holden in Colombo (“High Court”) dated 12.12.2006. In or around December, 1997 and January, 1998, the Plaintiff-Appellants (“Appellants”) sold and exported 225 metric tons of parboiled rice to the Defendant-Respondent (“Respondent”). It was sold and exported under two invoices bearing numbers SAC/MS/205/97-98 dated 27.12.1997 (“P2”) for 100 metric tons of rice to the value of USD 27,500/- and SAC/MS/217/97-98 dated 02.01.1998 (“P4”) for 125 metric tons of rice to the value of USD 34,375/-.

Excluding a part payment of USD 7000/-, made for the amount due under the invoice marked P2, no further payments were made by the Respondent to settle the amount owed under these transactions. Therefore, an amount of USD 54,875/- was due to the Appellants by the Respondent.

By fax dated 07.07.2000 ("P6"), the Appellants requested that the Respondent pay the outstanding balance. In response, by letter of 21^st August, 2000 ("P7"), the Respondent informed the Appellants that arrangements are being made to settle the said sum of USD 54,875/- within one year. While the Appellants acknowledged the receipt of P7 by letter dated 23.08.2000 (“P8”) and thanked the Respondent, subsequently by letter dated 06.11.2000 (“P9”) they informed the Respondent that the payment of the said sum of USD

54,875/- must be made within one month’s time.

Since the Respondent