Unicorns Clearing And Forwarding (private) Limited vs Murughasan Chandrika – SC CHC/APPEAL 04/2006-2018

In the case between Unicorns Clearing And Forwarding (private) Limited and Murughasan Chandrika), the court addressed whether the Colombo courts retained jurisdiction over a dispute concerning wrongful delivery of cargo, despite an arbitration and exclusive jurisdiction clause in the Bills of Lading stipulating English law and London arbitration. It was held that jurisdiction in Colombo was proper, since the defendants failed to timely object and thus waived that defense, and the arbitration clause did not display unequivocal consent to arbitrate. The principle reaffirmed is that contractual clauses selecting a foreign forum may not be enforceable if timely objection is not made and clear consent is absent, particularly in cases of unequal bargaining power. The decision relied on interpret