TaxTMI 
TaxTMI 
1998 (7) TMI 618
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....mum Wages Act as prevalent in Andhra Pradesh was revised and amended and accordingly the petitioner/applicant was required to make enhanced payment by 55 per cent over and above the wages which were payable to the workers at the time of execution of the contract. The petitioner/applicant submits that he is entitled to reimbursement of such increase in payment of wages to the workers. Secondly, it is alleged that the work had gone beyond the original date of completion due to the acts or lapses on the part of the respondent. Such acts or lapses have been stated in the petition. It is alleged that the applicant was required to incur extra overhead charges due to prolongation of the contract period. Another claim made is of Rs. 1 lakh towards ....
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....all the measurements of work and the bills preferred by them were processed; and the amount was paid to them. The applicant received the amount in full and final settlement of the contract and has submitted 'No demand certificate'. The said certificate issued by the applicant states as follows : "Notwithstanding any protest recorded by us in any correspondence, documents, measurement books and/or final bills etc., we waive all our rights to lodge any claim or protest in future under this contract. We are issuing this No Demand Certificate in favour of NTPC Limited with full knowledge and with our free consent without any undue influence, misrepresentation, coercion etc." It is, therefore, urged that in view of the no demand certificat....
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....o seek reference of dispute to the arbitration. 4. The question, therefore, is whether any arbitrable dispute really existed at the time when the present application/petition was filed in the court by the petitioner. The respondents have produced along with counter 'No demand certificate' issued by the petitioner-company. No doubt, the said 'No demand certificate' is in a proforma. However, there is absolutely nothing to show that the petitioner was coerced or pressurized to sign the said certificate. The said certificate was issued by the petitioner only after the work was over. The petitioner accepted the amount after giving this 'No demand certificate' obviously in full and final settlement of its claim. The learned counsel for the pe....
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....a), has in para 8 observed : "It is true that on completion of the work, right to get payment would normally arise and it is also true that on settlement of the final bill, the right to get further payment gets weakened but the claim subsists and whether it does subsists, is a matter which is arbitrable." However, the decision in the said case was mainly concerning the question of limitation. Para 6 of the judgment will show that for a valid claim for reference under section 20 of the Arbitration Act, 1940, it was necessary that there should be arbitration agreement and the application must be made within the time stipulated. The judgment of the Supreme Court in 1 supra has been explained in subsequent decision of apex court in P.K. R....
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.... did not lay down any new law. The court said that admittedly when full and final satisfaction was acknowledged by a receipt in writing and thereafter the amount is received unconditionally, the accord and satisfaction by the final settlement of claim comes into effect. Subsequent allegation of coercion is an after-thought and a device to get over the settlement of the dispute. These observations clearly show that making subsequent allegation of coercion etc. has no meaning as it is an after-thought and device to get over the settlement of dispute. 6. I have already pointed out that in the instant case, after issuing the 'No demand certificate' in full and final satisfaction of the claim, the petitioner not only accepted the amount, but ....