Full and final settlement can extinguish arbitration rights unless the settlement itself is challenged and set aside.

A binding full and final settlement superseded the underlying contract where the parties agreed to closure of all claims, and the claimant executed a no claim certificate and affidavit releasing further claims. On those facts, the original arbitration agreement did not survive, because the dispute had been replaced by a new contractual settlement. A bare allegation that the settlement was obtained under duress was insufficient to preserve a reference to arbitration in these proceedings. No arbitration could therefore be referred, and the application was not maintainable unless the settlement itself was first set aside in appropriate proceedings.

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Issues: Whether the arbitration agreement survived after the parties entered into a full and final settlement and the claimant executed a no claim certificate.

Analysis: The settlement recorded that a specified sum would be paid as full and final settlement towards closure of the contract and that both sides would have no further claim against each other. The claimant also executed a no claim certificate and an affidavit confirming release of all claims. On these facts, the earlier arbitration clause could not survive, because the dispute had been replaced by a new contractual settlement. The mere assertion that the settlement was obtained under duress did not preserve the arbitration clause for reference to arbitration in these proceedings.

Conclusion: The arbitration agreement did not survive the settlement and no reference to arbitration could be made; the application was not maintainable.

Ratio Decidendi: Once parties enter into a binding full and final settlement that supersedes the underlying contract, the original arbitration clause perishes unless the settlement itself is set aside in appropriate proceedings.

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