No claim certificate challenged for duress can still allow arbitration, with accord and satisfaction left to the arbitral tribunal.

A disputed no claim certificate did not bar appointment of an arbitral tribunal under Section 11 where an arbitration agreement existed and the court found a prima facie case of financial duress. The court held that questions whether the discharge voucher was voluntary, whether the dispute was live or finally settled by accord and satisfaction, and whether the claim fell within the arbitration clause were matters for the arbitral tribunal. The respondent's reliance on an alleged excepted matter therefore did not defeat reference to arbitration, and the disputes were referred for decision by the arbitrator.

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Issues: Whether the applicant was entitled to appointment of an arbitral tribunal under Section 11 despite the respondent's reliance on a no claim certificate and the contention that the dispute was an excepted matter.

Analysis: The application was maintainable before the proper High Court and there was an arbitration agreement between the parties. The respondent resisted reference on the basis that the contractor had signed a no claim certificate and, therefore, the claims stood finally settled and were excluded from arbitration. The Court applied the principles governing Section 11 proceedings and held that the question whether the discharge voucher or no claim certificate was voluntary or obtained under duress was a matter that could be left to the arbitral tribunal. On the facts placed before it, the Court found a prima facie case that the certificate had been obtained under financial duress. Questions relating to whether the claim was live or dead, whether the contract had been discharged by accord and satisfaction, and whether the claim fell within the arbitration clause were held to be matters for the arbitrator.

Conclusion: The applicant was entitled to reference of the disputes to arbitration, and the respondent's objection based on the no claim certificate did not bar appointment of an arbitrator.

Ratio Decidendi: A disputed no claim certificate or discharge voucher, when challenged as having been obtained under duress, does not by itself extinguish the arbitration agreement or bar appointment of an arbitrator, and the issue of accord and satisfaction is for the arbitral tribunal.

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