International commercial arbitration and full final settlement: Section 11 maintainable, but no arbitrable dispute survived after accord and satisfaction.

Part I of the Arbitration and Conciliation Act, 1996 was held applicable to an international commercial arbitration seated outside India unless expressly or impliedly excluded by agreement, and a Section 11 application for appointment of an arbitrator was therefore maintainable. However, the correspondence and receipt of payment as full and final settlement showed accord and satisfaction, with no pleading or proof of fraud, coercion, or misrepresentation. On those facts, the underlying claim was extinguished, no arbitrable dispute survived, and arbitration could not be invoked for the same demand.

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Issues: (i) whether an application for appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 was maintainable in an international commercial arbitration seated outside India; (ii) whether any arbitrable dispute survived after the parties had negotiated and accepted payment in full and final settlement.

Issue (i): whether an application for appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 was maintainable in an international commercial arbitration seated outside India.

Analysis: Part I of the Arbitration and Conciliation Act, 1996 was held applicable to international commercial arbitrations seated outside India unless expressly or impliedly excluded by agreement. The agreement did not exclude that regime, and the earlier binding line of authority recognising maintainability under Section 11 was applied.

Conclusion: The application was maintainable.

Issue (ii): whether any arbitrable dispute survived after the parties had negotiated and accepted payment in full and final settlement.

Analysis: The contractual clause provided for price adjustment if the iron content fell below the stipulated level and also contemplated amicable settlement followed by third-country arbitration only if the dispute remained unresolved. The correspondence showed negotiations, acceptance of revised payment terms, and receipt of money as full and final settlement. In the absence of pleading or proof of fraud, coercion, or misrepresentation, the settlement operated as accord and satisfaction. A party who knowingly accepted the benefit of the settlement could not later approbate and reprobate or invoke arbitration for the same claim.

Conclusion: No arbitrable dispute survived.

Final Conclusion: The appointment of an arbitrator was declined because the controversy had already been concluded by an accepted full and final settlement, leaving no subsisting dispute for reference.

Ratio Decidendi: Where parties consciously enter into and act upon a valid full and final settlement without fraud, coercion, or misrepresentation, the underlying dispute is extinguished and arbitration cannot be invoked thereafter.

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