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1994 (2) TMI 311

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..... ent had given notice for reference to an arbitration. Since the appellant did not agree either for the enhancement as claimed for or for reference to the arbitration, the respondent laid the suit under Section 20 of the Arbitration Act, 1940 for filing the agreement so as to refer the dispute to the arbitrator. Pending suit, he submitted a letter to the Government on 8-9-1986 and pursuant to this and further correspondence the Government constituted a sub committee to go into the question of labour escalation claimed by the respondent. The sub committee in its report had submitted to the Government for acceptance of the claim of the respondent subject to the terms mentioned in paragraph 8.0 of its report. Pursuant thereto, when it was addre .....

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..... ttlement 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.... Having acknowledged the settlement and also accepted measurements and having received the amount in full and final settlement of the claim, there is accord and satisfaction. There is no existing arbitrable dispute for reference to the arbitration. " Therein similar to the facts in this case the appellant admittedly accepted the amount in full and final settlement and given the receipt. Later it disputed, its correctness on the ground that it was obtained by coercion. When proceedings were laid for reference to arbitration the trial court uph .....

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..... tance by the contractor till 10-3-1989. If the contractor fails to communicate acceptance or rejection of offer by him in writing to the Secretary (I) I.D., Government of Maharashtra on or before 10-3-1989 then the same shall automatically lapse on the aforesaid date and shall not be binding on Government vis a vis the contractor thereafter. (v) The final amount to be paid to the contractor shall be arrived at only after actual calculations to be made on the basis of the principles enunciated in para 7 above. The amount that would be payable to the contractor in future shall also be regulated accordingly. You are requested to consider the offer and communicate your decision regarding acceptance or otherwise of the offer to the Secretary ( .....

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..... ant had accepted the principle on which the escalation charges are to be paid but in its working the amount was not calculated correctly and he expressly referred the same in his letter of acceptance and that, therefore, it is open to the respondent to contend before the arbitrator that in working the principle on which the amount offered by the Government the arbitrator has to decide as to what amount had been arrived at and if the working in principle is not acceptable any alternative principle would be applicable. If the arbitrator finds that the respondent is entitled to any claim, it is still an arbitrable dispute. We find no substance in the contention. Whatever be the principle or method or manner of working it out, a particular figu .....

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