Arbitrability of full and final settlement disputes: questions about unpaid balance must be decided by arbitration.

Where the parties dispute whether the contract was fully worked out and whether payment was accepted in full and final settlement, the matter concerns the existence and extent of any further monetary claim and the effect of the alleged settlement. Such questions are properly for the arbitrator and do not justify treating the arbitration clause as inapplicable at the threshold. An application under Section 33 of the Arbitration Act was therefore not maintainable on these facts, and the disputes were held to be arbitrable.

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Issues: Whether a dispute as to whether the work had been fully worked out and payment had been accepted in full and final settlement could be decided under Section 33 of the Arbitration Act, or whether such questions were to be left to arbitration.

Analysis: The dispute concerned whether any further amount remained payable after completion of the works and alleged acceptance of payment as full and final settlement. Such questions go to the existence and tenability of the monetary claim and to the effect of the alleged settlement. Where the parties dispute whether the contract has been fully worked out and whether payment was received in full and final settlement, those matters are fit for decision by the arbitrator and do not justify declaring the arbitration clause inapplicable at the threshold.

Conclusion: The application under Section 33 of the Arbitration Act was not maintainable on these facts and the disputes were held to be arbitrable; the appellant succeeded.

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