Sri Lanka

Arbitration Ordinance





Short title1.

This Ordinance may be cited as the


[12th December, 1866.] If at the time of making reference, or Courtmay

All civil matters may be referred to arbitration.

Arbitration may be compulsory or voluntary.

Arbitration Ordinance. PARTI REFERENCE To ARBITRATION 2. All matters in dispute between parties,which may form the subject of civil action, and not that of an indictment or criminal proceeding,may be submitted to arbitration. 3. A submission to arbitration may be compulsory by order ofcourt, or voluntary by the consent of parties. PART II COMPULSORY REFERENCE 4. If at any timeafter the institution of an action it shall appear to the satisfaction of the court that itrelates wholly or in part to matters of mere account of an intricate and complicated character,which cannot conveniently be tried in the ordinary way, it shall be lawful for such court toorder that such matters, either wholly or in part, be referred to one or more arbitrators to oenominated by the parties, or if they cannot agree or refuse to nominate them, by the court itselfupon such terms as to the cost? and otherwise as such court shall think reasonable. The award ofthe arbitrators or of the umpire shall be reported to the court, and shall, subject to theprovisions hereinafter contained, be treated as if it were a finding of the court on theparticular matter referred to arbitration.

at any time thereafter, it shall appear to the court, on a report to that effect made by the

arbitrators, that the allowance

determine any question of law upon which

or allowance of

disallowance of any particular item in such account depends upon a question of law fit to bedecided by the court, it shall be lawful for such court to try and determine such question, andthe finding of the court thereupon shall be taken and acted upon by the arbitrators asconclusive. 6. In every case where reference shall be

any item of account may depend.

Power to send

made to arbitration by the order of court as back to aforesaid, the court shall, in addition tothe aribitrators general power to remit conferred upon it by section 15, have power from time totime to remit the matters referred, or any of them, for the reconsideration and redeterminationof the said arbitrators or umpire upon such terms as to costs and otherwise as to the court mayseem proper. 7. Whenever the parties to any deed or If action

instrument in writing to be hereafter made or executed, or any of them, shall agree that

commenced by one party after all have agreed

Power of court to direct arbitration.

any existing or future differences between to arbitration,

them shall be referred to arbitration, and any one or more of the said parties, or any personclaiming through or under them, shall nevertheless commence any action against the other party,or against any person claiming through or under them, in respect of the matters so agreed to bereferred, it shall be lawful for the court in which the action is brought, on application by thedefendants, or any of them, upon being satisfied that no sufficient reason exists why suchmatters cannot be referred to arbitration according to such agreement as aforesaid, and that thedefendants or any of them were, at the time of the bringing of

court may slay proceedings.


such action, and still are, ready and willing to join and concur in all acts necessary and properfor causing such matters to be decided by arbitration, to make an order staying all proceedingsin such action, and compelling reference to arbitration on such terms as to costs and otherwise as to such court may seem fit: Provided always that any such rule or order may, at any timeafterwards, be discharged or varied as justice may require.

8. The compulsory proceedings arbitration upon shall, any unless

examined upon oath, it shall be lawful for the arbitrators or umpire, or any one arbitrator, andthey are hereby authorized and required, to administer oaths to such witnesses, or to take theiraffirmation, in cases where affirmation is allowed by law instead of oath; and if, upon such oathor affirmation, any person making the same shall wilfully and corruptly give false evidence,every person so offending shall be deemed and taken to be guilty of perjury, and shall beprosecuted and punished accordingly. 11. The arbitrators acting under any Award to be

deed of submission or compulsory order of reference, shall make their award under

made in three months unless parties or court

Proceedings before, and power of such arbitrator.

otherwise directed hereby, or by the deed or instrument authorizing the reference, be conductedin like manner, and subject to the same rules as to the power of the arbitrator and of the court,the attendance of witnesses, the production of documents, the enforcing or setting aside theaward, and otherwise, as upon a reference made by consent under a rule of court. PART IIIPROCEEDINGS BEFORE ARBITRATORS* 9. When a reference is made to arbitration by an order of court,or in pursuance of an agreement that such reference shall be made an order of court, the courtshall issue the same process to the parties and witnesses whom the arbitrators or umpire maydesire to have examined as the court is authorized to issue in suits tried before it; and personsnot attending in consequence of such process, or making any other default, or refusing to givetheir testimony, or being guilty of any contempt to the arbitrators or umpire during theinvestigation of the suit, shall be made subject to the like disadvantages, penalties, andpunishments, by order of the court, on the representation of the arbitrators or umpire, as theywould incur for the same 10. When in any order of reference, or in any submission to arbitration,containing an agreement that the submission shall be made a rule or order of court, it shall beordered or agreed that the parties and witnesses upon such references shall be

offence in suits tried before the court.


Power of arbitrators appointed under order of court or in pursuance of submission which may bemade on rule of court.

their hand and (unless such document or enlarge time. order shall contain a different limit oftime) within three months after they shall have been appointed and shall have entered on thereference, or shall have been called upon to act by a notice in writing from any party, but thecourt or the parties by consent in writing may enlarge the time for making the award. If noperiod be stated for the enlargement in such consent or such order for such enlargement, it shallbe deemed to be an enlargement for one month ; and, in any case when an umpire shall have beenappointed, it shall be lawful for him to enter on the reference in lieu of the arbitrators, ifthe latter shall have allowed their time, or their extended time, to expire without making anaward, or shall have delivered to any party or to the umpire, a notice in writing stating thatthey cannot agree. PARTIV AWARD* 12. When an award in a suit shall be Award must be

made either by the arbitrators or the umpire, it shall be submitted to the court

signed by parly making, and submitted with

under the signature of the person by whom proceedings,

It may be made, together with all the proceedings, depositions, and exhibits in the suit.

depositions, and exhibits.

When arbitrators may administer oath; false oath before them made perjury.

13. It shall be lawful for the arbitrators Arbitrators

or umpire, upon any reference, by an order of court, if they shall think fit, and if it is

may state their award in the form of a

not provided to the contrary, to state their special case. award as to the whole or any partthereof,

* So much of the provisions of this Part as regards voluntary references are repealed byOrdinance No. 2 of 1889, which is reproduced in this Edition as the Civil Procedure Code. V/68


in the form of a special case for the opinion of the court. 14. The court may, on the applicationof either party, modify or correct an award, where it appears that a part of the award is upon matters not referred to the arbitrators (provided that such part can be separated from the otherpart and does not affect the decision on the matter referred), or where the award is imperfect inform, or contains any obvious error which can be amended without affecting such decision. Thecourt may also, on such application, make such order as it thinks just respecting the costs of

the arbitration, question respecting such and the if any costs arise award


if an objection to the legality of the award is apparent upon the face of the award.

[Cap. 104

When court may modify or correct an . award. 16. No award shall be liable to be set Setting asideof

aside except on the ground of corruption or misconduct of the arbitrators or umpire. Anyapplication to set aside an award shall be made within ten days after the same has been submittedto the court and notified to the parties in the suit, and not thereafter.



If the court shall not see cause to Judgment

remit the award or any of the matters referred to arbitration for reconsideration in manneraforesaid, and if no application shall have been made to set aside the award, or if the courtshall have refused such application, the court shall proceed to pass judgment according to theaward, or

upon awards.

When court may remit award.

contains no sufficient provision concerning them. 15. In any of the following cases the courtshall have power to remit the award or any of the matters referred to arbitration to thereconsideration of the same arbitrators or umpire, upon such terms as it may think proper, thatis to say -

if the award has left undetermined some of the matters referred to arbitration, or if itdetermine matters not referred to arbitration ; if the award is so indefinite as to be incapableof execution;

according to its own opinion on the special case if the award shall have been submitted to it inthe form of a special case; and the judgment which shall be so given shall be carried intoexecution in the same manner as other decrees of the court. In every case in Appeal. whichjudgment shall be given according to the award, the judgment shall be final, and shall not besubject to appeal. Where judgment shall be given in any case of compulsory reference, suchjudgment shall be subject to appeal. 18. If there be no cause pending in Proceedings on

court, and the submission has not been made a rule of court, the mode of enforcing the award isby action on the bond of submission. awards not made a rule of court.