CHAIRMAN AND M.D., N.T.P.C. LTD. versus M/S RESHMI CONSTRUCTIONS, BUILDERS & CONTRACTORS

CHAIRMAN AND M.D., N.T.P.C. LTD. versus M/S RESHMI CONSTRUCTIONS, BUILDERS & CONTRACTORS

The arbitration clause in the contract subsists since the payment was accepted by the contractor under protest and without prejudice. Disputes as regards the final bill arose prior to its acceptance, the appellant did not establish unequivocal acceptance or novation, and triable issues exist, so reference to arbitration is warranted.

Parties
Appellant: Chairman and M.D., N.T.P.C. Ltd.; Respondent: M/s Reshmi Constructions, Builders & Contractors
Jurisdiction
India
Judgment Date
05 January 2004
Procedural Posture
Civil Appeal / Appeal From High Court Decision
Outcome
Appeal dismissed
Legal Topics
Survival of Arbitration Clause After Contract Satisfaction, No Dues Certificate Under Protest, Section 20 of Arbitration Act, 1940
Arbitration Survival of Arbitration Clause After Contract Satisfaction No Dues Certificate Under Protest Section 20 of Arbitration Act, 1940

Case Brief

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Parties

Chairman and M.D., N.T.P.C. Ltd.

Appellant

M/s Reshmi Constructions, Builders & Contractors

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Decision

Legal Issues

  1. 1 Whether the arbitration clause survived after execution of no-dues certificate and acceptance of final payment
  2. 2 Whether coercion or protest invalidates accord and satisfaction
  3. 3 Whether all disputes related to contract execution are referable to arbitration

Ratio Decidendi

The arbitration clause in the contract subsists since the payment was accepted by the contractor under protest and without prejudice. Disputes as regards the final bill arose prior to its acceptance, the appellant did not establish unequivocal acceptance or novation, and triable issues exist, so reference to arbitration is warranted.

Court Disposition

Appeal dismissed

Orders

  • The impugned judgment of the High Court is affirmed.
  • No costs awarded.