Discharge voucher and economic duress claims: arbitration remains available unless accord and satisfaction is clearly voluntary and genuine.

A discharge voucher or no-claim certificate does not by itself bar arbitration. Under Section 11(6) of the Arbitration and Conciliation Act, 1996, the Chief Justice or designate must make only a prima facie assessment of whether allegations of coercion, duress, undue influence or fraud are bona fide and supported by material. A bare assertion is insufficient, but surrounding correspondence and circumstances such as delayed payment and financial pressure may justify treating the dispute as arbitrable and leaving the issue of accord and satisfaction to the arbitral tribunal. The stated principle is that arbitration is excluded only where voluntary and genuine settlement is clearly established.

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Issues: Whether the dispute was non-arbitrable because the insured had executed a discharge voucher in full and final settlement, and whether the plea that the voucher was signed under economic duress justified appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996.

Analysis: The governing principle is that a discharge voucher or no-claim certificate does not automatically bar arbitration. Where coercion, duress, undue influence, or fraud is alleged, the Chief Justice or designate must form a prima facie view on whether the plea is bona fide and supported by material. A bald assertion is insufficient, but where correspondence and surrounding circumstances show prolonged withholding of payment, financial stress, and a plausible claim of pressure to sign the voucher, the court may treat the dispute as arbitrable and leave the matter for adjudication by the arbitral tribunal.

Conclusion: The plea of accord and satisfaction was not found to be so unimpeachable as to shut out arbitration at the threshold. The application for appointment of an arbitrator was therefore maintainable, and the objection to arbitrability failed.

Final Conclusion: The appeal failed, and the order appointing an arbitrator was left undisturbed.

Ratio Decidendi: A discharge voucher bars arbitration only when accord and satisfaction is shown to be voluntary and genuine; where the plea of coercion or economic duress is prima facie credible, the dispute remains arbitrable under Section 11(6).

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