Fully and finally accepted can be challenged if obtained in coercion-Interesting read
Whether a party can invoke Arbitration after Fully and Finally accepting the amount offered?
5. The Oriental Insurance Co. Ltd. & Anr. v. Dicitex Furnishing Ltd. [Judgment dated 13.11.2019 in Civil Appeal No. 8550 of 2015]
The Supreme Court held that if a party which has executed the discharge agreement or discharge voucher, alleges that the execution of such document was on account of fraud/coercion/undue influence practiced by the other party, and if that party establishes the same, then such discharge voucher or agreement is rendered void and cannot be acted upon and consequently, any dispute raised by such party would be arbitrable. Further, it was held that the court which is required to ensure that an arbitrable dispute exists, has to be prima facie convinced about the genuineness or credibility of the plea of coercion; it cannot be too particular about the nature of the plea, which necessarily has to be made and established in the substantive proceeding. It was observed that if the court were to take a contrary approach and minutely examine the plea and judge its credibility or reasonableness, there would be a danger of its denying a forum to the applicant altogether, because rejection of the application would render the finding final, thus, precluding the applicant of its right even to approach a civil court.
Whether the Arbitration Clause can be invoked after full and final settlement of Dispute?
6. M/S MAKRO V. THE NEW INDIA ASSURANCE CO. LTD. & ANR. [Judgment dated 24.09.2019 in ARB. P. 416/2019]
The court reiterated all that needs to be seen at the time of deciding an application under Section 11(6) of the Act is the existence of the Arbitration Agreement. Further, it was held that the defence of full and final settlement of a claim will not be considered by the Court while examining the petition under Section 11(6) of the Act.
Comments
Post a Comment
Please share your valuable comments and thoughts on this article. Thanks!