DAMODAR VALLEY CORPORATION versus K.K.KAR

DAMODAR VALLEY CORPORATION versus K.K.KAR

Where in a contract there is an arbitration clause, the question whether there has been a full and final settlement under the contract is itself a dispute arising 'upon' or 'in relation to' or 'in connection with' the contract, and can be referred to arbitration. The arbitration clause survives unilateral repudiation or contentions regarding final settlement unless the contract is substituted or rendered wholly non-existent; thus, the High Court erred in dismissing the appellant's petition in toto.

Parties
Appellant: Damodar Valley Corporation; Respondent: K. K. Kar
Jurisdiction
India
Judgment Date
12 November 1973
Procedural Posture
Civil Appeal / Appeal From the Judgment and Order Dated the 25th January, 1971 of the Calcutta High Court in Civil Rule No. 1683 of 1970
Outcome
Appeal partly allowed
Legal Topics
Repudiation of Contract, Final Settlement Under Contract, Arbitration Clause and Its Survival
Arbitration Repudiation of Contract Final Settlement Under Contract Arbitration Clause and Its Survival

Case Brief

Summary, issues, holding and outcome

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Parties

Damodar Valley Corporation

Appellant

K. K. Kar

Respondent

Procedural Posture

Civil Appeal / Appeal From the Judgment and Order Dated the 25th January, 1971 of the Calcutta High Court in Civil Rule No. 1683 of 1970

Legal Issues

  1. 1 Whether arbitration clause perishes with the contract upon repudiation or final settlement
  2. 2 Whether dispute about full and final settlement is arbitrable
  3. 3 Extent of court's enquiry under ss. 9(b) and 33 of Arbitration Act, 1940

Ratio Decidendi

Where in a contract there is an arbitration clause, the question whether there has been a full and final settlement under the contract is itself a dispute arising 'upon' or 'in relation to' or 'in connection with' the contract, and can be referred to arbitration. The arbitration clause survives unilateral repudiation or contentions regarding final settlement unless the contract is substituted or rendered wholly non-existent; thus, the High Court erred in dismissing the appellant's petition in toto.

Court Disposition

Appeal partly allowed

Orders

  • Subordinate Judge directed to dispose of the appellant's petition according to law
  • Civil Miscellaneous Petition dismissed