Eric Peiris vs Sri Lanka Insurance Corporation Ltd – SC/CHC APPEAL 56/2014-2024

In the case between Eric Peiris (Plaintiff-Appellant) and Sri Lanka Insurance Corporation Ltd. (Defendant-Respondent), the court addressed whether an arbitration clause within a fire insurance policy precludes the establishment of an independent cause of action based on subsequent correspondence (letters ‘P1’ and ‘P2’). It was held that the arbitration agreement governed the dispute, and the jurisdiction of the Commercial High Court was thereby excluded, reaffirming the principle that a valid arbitration clause encompasses disputes arising from both the contract and related correspondence where the nature of the dispute falls within its terms. The decision relied on the Arbitration Act No. 11 of 1995 and emphasized that disputes concerning the quantum of loss under an insurance contract in