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Issues: Whether, after execution of no-claim certificates and receipt of the final bill amount, any arbitrable dispute survived so as to justify appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996.
Analysis: The governing principle is that a Chief Justice or designate, while dealing with a request for appointment of an arbitrator, must examine whether there was really accord and satisfaction or discharge of the contract by performance. If the materials show a voluntary full and final settlement, the dispute may not be referable to arbitration. If, however, the discharge document was obtained by fraud, coercion, duress, or undue influence, and that plea is prima facie credible, arbitration may still be directed. A bare allegation of coercion is insufficient; the party asserting it must prima facie support the plea with material. On the facts, the certificates executed at the time of receiving payment unequivocally stated that the amount was accepted in full and final settlement and that no further claims survived. The contractor raised no immediate grievance after receipt of payment, and the subsequent allegation of financial duress was unsupported by any prima facie material.
Conclusion: The no-claim certificates were held to be voluntary, the contract was treated as discharged by full and final settlement, and no arbitrable dispute survived; the order referring the matter to arbitration was set aside.
Ratio Decidendi: Where a contractor has accepted final payment and executed an unambiguous no-claim or full and final settlement certificate, arbitration cannot be ordered unless the challenge to that settlement is prima facie supported by material showing fraud, coercion, duress, or undue influence.
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