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Sri Lankan Supreme Court clarifies correction of arbitral awards under Arbitration Act s 27; no oral hearing required for incidental matters; time‑limit burden; procedural irregularities not public policy

Published on: 15 July 2024

Published by a LexisNexis Arbitration expert
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Narendra Thillainathan v Mohomed Khan and others [SC Appeal Nos 200/2018, 200A/2018, 200B/2018 & 200C/2018] Supreme Court of Sri Lanka

What are the practical implications of this case?

Section 27 of the Act, addressing the rectification of arbitral awards, derives from Article 33 of the UNCITRAL Model Law. Jurisprudence remains sparse on both the ambit and the process governing a tribunal’s power to correct its award.

  • First, the Court examined whether the amendments ran counter to the tribunal’s own reasoning in the Original Award, and whether they fell outside ‘errors in computation, clerical or typographical slips, omissions, or comparable mistakes’. The Court concluded that this argument was legally misguided: the Tribunal had never dismissed the claim for the Return sought in the Statement of Claim, as asserted by the Borrowers. The failure to include the Return was, therefore, a plain omission by the Tribunal.
  • Secondly, the judgment sheds light on the procedural steps to be followed when entertaining an application to correct an award. In doing so, the Court provides guidance on how such requests should be handled...

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