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2009 (4) TMI 898

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..... a High Court at Chandigarh in A.A. No. 193/2006 dated 26.4.2007. By the impugned judgment, the High Court has appointed Justice G. C. Mittal (retired Chief Justice) as the sole Arbitrator. 3) The facts in brief are: - the appellant, Engineer-in-Chief, had entered into a contract agreement with respondent/contractor. The contract was completed on 20.9.2002. A final bill was prepared, settling all claims, by the respondent and was forwarded to the appellants. Respondent after receiving payment of final bill signed the same, without any protest or reservation on 27.3.2001. Again after two years, respondent submitted a list of 20 claims to the appellants. Appellants in their reply stated that as per condition 65 of IAFW 2249 (General Conditi .....

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..... . To support his contentions he would rely on the decision of this court in P. K. Ramaiah Co. v. N.T.P.C., 1994 (3) SCC 126, wherein this Court has held that: .........Admittedly the full and final satisfaction was acknowledged by a receipt in writing and the amount was received unconditionally. Thus there is accord and satisfaction by final settlement of the claims. The subsequent allegation of coercion is an afterthought and a devise to get over the settlement of the dispute, acceptance of the payment and receipt voluntarily given. In Russell on Arbitration, 19th Edn., p. 396 it is stated that an accord and satisfaction may be pleaded in an action on award and will constitute a good defence. Accordingly, we hold that the appella .....

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..... by the contractor after submission of final bill and these shall be deemed to have been waived and extinguished. Also condition 70 states that, all dispute between the parties to the contract shall after written notice by either party to the contract, be referred to the sole arbitration of a serving officer having degree in Engineering or equivalent. 9) While appointing an Arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996, two things must be kept in mind: i. That there exists a dispute between the parties to the agreement and that the dispute is alive. ii. Secondly, an Arbitrator must be appointed as per the terms and conditions of the agreement and as per the need of the dispute. 10) It is the specific .....

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