1.ELVITIGALA 2.JAYANTHI MALA
Vs.
CEYLINCO DEVELOPMENT BANK LIMITED

SUPREME COURT
WANASUNDERA P.C., J.
ABEYRATHNE J.
ANIL GOONERATNE J.
SC/CHC/25/2009
COMMERCIAL HIGH COURT CASE
NO. HC/CIVIL/132/2006(1)
09.09.2016.

Hire purchase Agreement - Hire Purchase of Vehicle- Guarantor- Notice of termination- installments- Carelessness of registered Attorney in preparing the Petition of appeal.

Plaintiff Respondent by agreement PI with 1st Defendant- Appellant leased the vehicle in question on monthly installments. 2nd Defendant was the guarantor. 1st Defendant defaulted in making payments as per agreement PI. Accordingly agreement was terminated. 1st Defendant although the agreement was terminated, failed to return the vehicle. High Court held in favour of Plaintiff Respondent.

HELD:

It is observed that the transaction between parties and its characteristics of a hire purchase agreement, conclude that the contract had been breached by the Appellants. Plaintiff- Respondent delivered the vehicle to the Hirer (1st Defendant- Appellant) who took immediate possession. Credit facilities made available to Hirer, who made deposit but defaulted in paying the installments.