Sathsindu Forwarding & Security (Pvt) Limited and Bagnold Associates Limited vs Sri Lanka Ports Authority – SC APPEAL NO. 119/2017-2022

In the case between Sathsindu Forwarding & Security (Pvt) Limited, Bagnold Associates Limited, and Sri Lanka Ports Authority, the court addressed whether the arbitral tribunal exceeded its mandate by awarding relief based on clause 10.3, which was not expressly referred to arbitration by the parties. The court determined that the tribunal had indeed overstepped the boundaries set by the arbitration agreement, finding that any relief granted should have been confined to the dispute as framed—specifically, the non-payment of an advance of US$60,000. This holding reaffirmed the principle that an arbitral tribunal’s jurisdiction is limited to the matters submitted to it by the parties, as embedded in sections 4, 15, 18, 24, 25, and 32 of the Arbitration Act. The decision underscores the statut