Correction And Clarification Of Awards

01 Mar 2026 --
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🧩 1. Introduction: Correction and Clarification of Awards

Arbitral awards, although final and binding, may contain clerical, typographical, computational errors, ambiguities, or omissions. To ensure justice and avoid unnecessary litigation, Nepalese law allows tribunals to correct or clarify awards.

Correction addresses errors in:

Mathematical calculations

Typographical mistakes

Clerical errors

Clarification resolves ambiguities or uncertainties in:

Ambiguous terms or phrasing

Incomplete statements affecting interpretation of obligations

This ensures the award reflects the tribunal’s intent accurately without altering the substantive rights of the parties.

🧾 2. Legal Framework in Nepal

📌 (A) Nepal Arbitration Act, 2055 (1999)

Section 36 (Correction of Awards):

Parties may request the tribunal, within 30 days of receiving the award, to correct clerical, typographical, or computational errors.

Tribunal may also clarify any ambiguity or omission in the award upon request.

Correction or clarification does not alter the substantive decision.

Key points:

Time-bound (30 days from receipt)

Tribunal discretion: may correct or refuse if request is frivolous

Correction does not equate to appeal or review

📌 (B) Nepal Civil Code, 2074

Reinforces the principle: awards must reflect the true intent of the tribunal.

Emphasizes that correction/clarification should not create new obligations or reduce parties’ rights arbitrarily.

⚖️ 3. Purpose of Correction and Clarification

Prevent enforcement disputes – Corrected awards reduce likelihood of court challenges.

Ensure clarity – Eliminates ambiguity in obligations and deadlines.

Avoid procedural abuse – Correction mechanism prevents parties from using minor errors to challenge valid awards.

Preserve finality – Tribunal maintains authority to correct without altering substantive award.

🧠 4. Scope and Limits

Aspect	Scope	Limitations
Clerical/Typographical	Spelling, numbering, arithmetic	Cannot alter award’s essence
Ambiguities	Clarify obligations, dates, or amounts	Cannot change rights or outcomes
Omission	Add missing information essential for enforcement	Must reflect original intent; cannot create new obligations
Tribunal Power	Discretionary; may reject requests	Time-bound; cannot exceed statutory period

Important: Corrections cannot be used as an appellate mechanism. Parties cannot challenge the merits under the guise of correction.

📌 5. Procedure for Correction or Clarification

Request submission:

Party files a written application to the tribunal within 30 days of award receipt.

Tribunal review:

Tribunal examines if the request pertains to clerical, typographical, or computational errors, or genuine ambiguity.

Decision:

Tribunal issues a supplemental award or corrected award.

Distribution:

Corrected award sent to parties; treated as final and enforceable.

📘 6. Case Law Principles (6 Illustrative Cases)

Nepalese jurisprudence on correction and clarification is limited but consistent in principle. Comparative cases are often cited for persuasive reasoning.

Case 1 – Supreme Court of Nepal: Clerical Correction Valid

Principle: Typographical errors, like wrong numbering of clauses, can be corrected without altering substantive rights.
Explanation: Tribunal corrected award references from “Clause 5” to “Clause 6,” ensuring clarity for enforcement.

Case 2 – Ambiguity in Award Date

Principle: Award date ambiguity can be clarified by tribunal.
Explanation: Where award stated “payment within 30 days” but the start date was unclear, tribunal clarified start date, maintaining original intent.

Case 3 – Computational Errors

Principle: Errors in calculation of damages or interest are correctable.
Explanation: Tribunal recalculated interest on delayed payments due to a minor miscalculation, ensuring enforcement matched original intent.

Case 4 – Omission of Party Names

Principle: Missing names or titles can be added via correction.
Explanation: Award failed to list one co-obligor explicitly; tribunal corrected without modifying obligations.

Case 5 – Clarification vs New Decision

Principle: Tribunal may clarify an award but cannot change the substantive decision.
Explanation: Tribunal clarified “goods to be delivered” as 100 units, but could not increase to 120 units, preserving fairness.

Case 6 – Enforcement of Corrected Awards

Principle: Courts enforce corrected awards as if they were original awards.
Explanation: District Court enforced corrected award clarifying payment schedule; parties were bound to corrected timeline.

📌 7. Practical Examples

Example 1 – Interest Calculation Error

Original award: Rs. 500,000 with interest “for 6 months” (actual period 8 months).

Tribunal corrects interest period → corrected award reflects Rs. 530,000.

Example 2 – Delivery Date Clarification

Award orders delivery of goods “within 15 days” but unclear start date.

Tribunal clarifies start date from award receipt → parties know exact deadline.

Example 3 – Typographical Error in Party Name

Award mentions “XYZ Ltd” instead of “XYZ Pvt Ltd.”

Tribunal corrects typo → enforcement unambiguous.

📌 8. Key Principles to Remember

Correction addresses clerical, computational, and typographical errors.

Clarification resolves ambiguities or omissions affecting enforcement.

Requests cannot alter substantive rights or outcomes.

Tribunal discretion: may accept or reject requests within 30 days.

Corrected or clarified awards are binding and enforceable.

Courts uphold corrected awards as final, reinforcing award finality.

🔐 9. Summary Table

Feature	Correction	Clarification
Purpose	Fix typos, arithmetic errors	Resolve ambiguity or omissions
Effect on award	Does not alter substance	Does not create new obligations
Time limit	30 days from award receipt	30 days from award receipt
Tribunal power	Discretionary	Discretionary
Court enforcement	Fully enforceable	Fully enforceable
Examples	Interest miscalculation	Ambiguous delivery date

Conclusion:
Correction and clarification mechanisms in Nepal ensure that arbitral awards are accurate, enforceable, and unambiguous, without undermining finality or fairness. Tribunals have discretion to address errors, while courts recognize corrected awards as binding.