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2000 (10) TMI 909

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..... t the Petitioner has altogether failed to deal with the circumstances in which the letter dated 25-3-1994 was issued. Knowing that it had issued such a letter, it was essential that the question addressed explicitly. All that has been stated is that it seems that some discrepancy in the account exists. In my opinion due significance and sanctity must be given to letters where full and final satisfaction is recorded. The learned counsel for the Petitioner submits that it is well settled that the issuance of a letter such as that dated 25-3-1994 does not bar the party to seek initiation of arbitration. However, in this case there must be a categorically pleading in the petition itself that the letter was extracted from the Petitioner under .....

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..... trary view. On the other hand the decisions discussed above support our conclusion." (p. 57) 2. The learned counsel for the Petitioner has ignored the sentence underlined by me which sets down the rider and exception to the general proposition that whether there has been a full and final settlement or accord is an arbitrable dispute. It should have been explained in the plaint in detail why the full and final certification is not enforceable, i.e., for absence of consent, or presence of coercion and fraud of the respondent. If the arbitration clause has been invoked simpliciter, as has evidently been done in the present case, it will have to be held that the contract itself had come to an end and with it the Arbitration Clause which w .....

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..... on, as also the application which had been filed thereto appears to me to indicate that the Petitioner was not happy with the manner in which the accounts were drawn and was, therefore, challenging the accounts also by way of applications seeking production of sundry documents. It was not the petitioner s case in the pleadings that the letter dated 25-3-1994 was extracted. This is an onerous and strict duty cast on the Petitioner, since the reference of the parties to arbitration would have the direct effect of rendering the letter totally ineffectual. If public policy would call for protecting a party from signing a full and final receipt in order to secure payment, this public policy would also dictate that where such certification was gi .....

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..... alley Corpn. v. K.K. Kar this Court noted the facts thus : (SCR P. 241 : SCC p. 143, para 2) "It is the case of the appellant that these payments including the return of the deposit amount finally settled the claims of the respondent. No doubt the respondent was asked to submit his bill along with a receipt stating that he received the payment in full and final settlement of all payments and that there was no other claim. But the respondent while submitting his bill did not give the receipt as desired. The amount of the bill was, however, paid after receipt of which the respondent claimed further sums from the appellant including damages for repudiation of the contract." 4. On the strength of this authority as well as the views exp .....

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