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Issues Involved: Interpretation of Arbitration clause in a contract post settlement of disputes and invoking Arbitration clause after reaching a settlement.
The Supreme Court considered a case where a respondent submitted a tender for construction work in the appellant's factory, leading to a contract with a completion deadline. Despite the work not being completed on time, the parties settled their disputes through a written document. The respondent later claimed a calculation mistake and invoked the Arbitration clause. The appellant argued that once disputes were settled amicably, it was not permissible to unilaterally disregard the settlement and invoke Arbitration. The Court referred to previous decisions emphasizing that after a full and final settlement, there is no arbitrable dispute left, and the Arbitration clause cannot be invoked. The respondent relied on a previous case but was rejected due to the absence of acceptance of settlement. The Court held that once a settlement is reached, it cannot be disregarded unilaterally to invoke Arbitration, preserving the sanctity of contracts and settlements. Therefore, the High Court's decision was overturned, ruling that the respondent could not invoke the Arbitration clause post-settlement.
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