Arbitrability after discharge voucher: prima facie duress claim leaves full and final settlement issues for the arbitral tribunal.

At the Section 11 referral stage under the Arbitration and Conciliation Act, 1996, a discharge voucher marked "full and final settlement" does not by itself extinguish arbitrability where the claimant prima facie alleges coercion or economic duress. A prior voluntary amicable settlement may bar arbitration, but where the voucher is said to have been signed under financial pressure or for an inadequate amount, the validity and effect of that settlement must be examined by the arbitral tribunal. The court's role is limited to checking whether an arbitration agreement exists and whether a prima facie arbitrable dispute is raised. The dispute was therefore required to be referred to arbitration.

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Issues: Whether a dispute raised by an insured after signing a discharge voucher and receiving payment in full and final settlement can still be referred to arbitration under the insurance policy.

Analysis: The arbitration clause survived the discharge voucher dispute. A prior amicable settlement concluded voluntarily may bar arbitration, but a printed or standard form discharge voucher taken as a condition for release of admitted dues does not, by itself, extinguish arbitrability, particularly where the claimant asserts economic duress, coercion, or involuntary acceptance. At the Section 11 stage, the referral court must only see whether an arbitration agreement exists and whether there is a prima facie arbitrable dispute. The credibility of the plea that the voucher was signed under financial pressure and for an inadequate amount is for the arbitral tribunal to examine. The dispute regarding full and final settlement itself remains within the scope of the original arbitration agreement.

Conclusion: The discharge voucher did not bar reference to arbitration, and the matter was required to be referred to the arbitral tribunal.

Final Conclusion: The refusal to appoint an arbitrator was unsustainable, and the appeals succeeded with appointment of a sole arbitrator to decide the dispute on merits.

Ratio Decidendi: At the stage of referral under Section 11 of the Arbitration and Conciliation Act, 1996, a discharge voucher or full and final settlement receipt does not conclusively extinguish arbitrability where coercion or economic duress is prima facie alleged, because the tribunal alone must determine the validity and effect of such settlement.

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