2001 (2) TMI 922

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....nt contained in arbitration a clause which is in the following terms : "56.1 : If any dispute shall arise between parties touching on the Contract/ agreement or the construction or operation thereof, or the rights, duties or liabilities under these, except as to any matters, the decision of which is specially provided for by the General or the Special Conditions, such disputes shall be referred to two arbitrators, one to be appointed by each party, and the said arbitrators shall together appoint an Umpire in writing before entering on the reference and the award of the arbitrators or the Umpire, as the case may be, shall be final and binding on both the parties. The arbitrators or the Umpire as the case may be, may, with the consent of t....

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....able amendment from the bank. This bank guarantee amendment will be furnished by VMT to TPL before 25-8-1998. The advance payment guarantee will be returned by TPL for cancellation. 4. With the above mutually agreed settlement both the parties will not have any claim on each other. This is the final and final settlement." 3. Pursuant to and in furtherance of the said agreement the petitioners herein have executed a no claim certificate stating : "We have submitted final bill for above contract vide Bill No. Final settlement dated 12-8-1998 for Rs. 25,00,000. (Rupees twenty-five lakhs only) for the complete execution of the above order. This is our last claim under the above order. We confirm that we have no outstanding further clai....

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.... lakhs in full and final settlement, the arbitration agreement stood superseded and new agreement governs the parties. The learned counsel in support of the said contention strongly relies upon a decision of the Apex Court in Nathani Steels Ltd. v. Associated Constructions [1995] Supp. (3) SCC 324. Section 7 of the Arbitration and Conciliation Act, 1996 reads thus : "Arbitration agreement. - (1) In this Part, 'arbitration agreement' means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. (2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form ....