M/S. GAYATRI PROJECT LTD. versus M/S. SAI KRISHNA CONSTRUCTION

M/S. GAYATRI PROJECT LTD. versus M/S. SAI KRISHNA CONSTRUCTION

As there was no acceptance of the full and final settlement by the respondent, and the issue is open to interpretation, the question whether the settlement bars arbitration should be decided by the arbitrator and not at the referral stage. The High Court's decision to refer the matter to arbitration is correct and there is no merit in the appeal.

Parties
Appellant: M/S. Gayatri Project Ltd.; Respondent: M/S. Sai Krishna Construction
Jurisdiction
India
Judgment Date
28 November 2013
Procedural Posture
Civil Appeal / Appeal Against Order Under Section 11(5) and (6) of Arbitration and Conciliation Act, 1996
Outcome
Appeal dismissed
Legal Topics
Maintainability of Application Under Section 11(5) and (6) Arbitration and Conciliation Act, Full and Final Settlement, Appointment of Arbitrator, Scope of Arbitrable Disputes
Arbitration Maintainability of Application Under Section 11(5) and (6) Arbitration and Conciliation Act Full and Final Settlement Appointment of Arbitrator Scope of Arbitrable Disputes

Case Brief

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Parties

M/S. Gayatri Project Ltd.

Appellant

M/S. Sai Krishna Construction

Respondent

Procedural Posture

Civil Appeal / Appeal Against Order Under Section 11(5) and (6) of Arbitration and Conciliation Act, 1996

Legal Issues

  1. 1 Whether a letter dated 6-6-2003 constituted a full and final settlement, thereby ousting the arbitration clause
  2. 2 Whether existence of 'full and final settlement' can be determined by the arbitrator or is to be decided by a court prior to referral to arbitration
  3. 3 Maintainability of application under Section 11(5) and (6) of the Arbitration and Conciliation Act, 1996 in the facts of an alleged accord and satisfaction

Ratio Decidendi

As there was no acceptance of the full and final settlement by the respondent, and the issue is open to interpretation, the question whether the settlement bars arbitration should be decided by the arbitrator and not at the referral stage. The High Court's decision to refer the matter to arbitration is correct and there is no merit in the appeal.

Court Disposition

Appeal dismissed

Orders

  • Arbitrator to conclude proceedings expeditiously.