Accord and satisfaction through no further claim certificate can bar arbitration when coercion is not prima facie shown

Acceptance of the final bill with a no further claim certificate was treated as accord and satisfaction, leaving no surviving arbitral dispute. In a Section 11 request, the Court could examine whether the claim had already been concluded and whether coercion or undue influence was prima facie established. Because the allegation of coercion was unsupported by contemporaneous correspondence, specific pleadings, or prompt protest, it was found to be only a bald assertion raised in the affidavit. The objection based on full and final settlement therefore succeeded, and appointment of an arbitrator was refused.

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Issues: Whether the arbitration application was liable to be rejected on the ground that the final bill was accepted with a no further claim certificate and no prima facie case of coercion or undue influence was established.

Analysis: The application arose from a request for appointment of an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996. The respondents relied on the final bill, the no further claim certificate, and the plea of full and final settlement to contend that no arbitral dispute survived. The applicant alleged coercion and undue influence, but that plea was not supported by any contemporaneous correspondence, specific pleading foundation, or prompt protest after receipt of the final bill. In a proceeding under Section 11, the Court could examine whether the claim had been concluded by accord and satisfaction and whether the allegation of coercion or undue influence was prima facie made out. On the materials placed, the Court found that the settlement was complete and that the challenge to it was a bald assertion only raised in the affidavit.

Conclusion: The objection based on full and final settlement succeeded, the plea of coercion and undue influence was not prima facie established, and the request for appointment of an arbitrator was rejected.

Final Conclusion: No arbitral dispute survived after acceptance of the final bill with a no further claim certificate, so the application for appointment of an arbitrator could not be sustained.

Ratio Decidendi: Where a final bill is accepted with a no further claim certificate and the party alleging coercion or undue influence fails to lay a prima facie factual foundation, the dispute is treated as concluded by accord and satisfaction and is not referable to arbitration under Section 11.

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