Arbitration referral and disputed settlement documents: allegations of coercion may be left for the tribunal to decide first.

A disputed plea that a settlement deed, indemnity bond and no-claim certificate were executed under duress or coercion need not be conclusively decided at the referral stage if the surrounding material does not permit a clear finding. The Court noted that a bare allegation of fraud, coercion, duress or undue influence is insufficient on its own, but where affidavits and documents indicate that witness and documentary examination is required, the genuineness of the alleged full and final settlement may be left to the arbitral tribunal as a preliminary issue. The disputes were therefore referred to a sole arbitrator.

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Issues: Whether the existence of a settlement deed, indemnity bond and no-claim certificate allegedly executed under duress and coercion precluded reference of the disputes to arbitration, or whether that question should be left to the arbitrator as a preliminary issue.

Analysis: The dispute turned on the genuineness and effect of the alleged full and final settlement. The Court applied the principle that a bald plea of fraud, coercion, duress or undue influence is not enough, but where the surrounding material does not permit a conclusive finding at the referral stage, the matter need not be finally decided then and there. On the affidavits and documents, the question whether the settlement documents were voluntarily executed would require examination of witnesses and documentary evidence. The Court therefore found it inappropriate to conclusively hold that the plea of duress was an afterthought or lacked credibility.

Conclusion: The issue of full and final settlement versus execution under duress and coercion was left to be decided first by the arbitral tribunal, and the disputes were referred to a sole arbitrator.

Final Conclusion: The petition succeeded in securing a reference to arbitration, with the disputed settlement question reserved for determination in the arbitral proceedings.

Ratio Decidendi: At the referral stage, a disputed plea that a discharge or settlement was obtained by fraud, coercion, duress or undue influence need not be finally decided if the materials do not permit a conclusive finding; such issue may be left to arbitration as a preliminary question.

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