NISHANT
Arbitration and Conciliation Act, 1996 - Discharge of a contract - Meaning of - Effect of fraud/coercion/undue influence thereon - arbitrability of the dispute :: Discharge of a contract by an agreement
NISHANT MEHROTRA 10 Feb 2018

Arbitration and Conciliation Act, 1996 - Discharge of a contract - Meaning of - Effect of  fraud/coercion/undue influence thereon - arbitrability of the dispute :: Discharge of a contract by an agreement

SC :: in M/s ONGC Mangalore Petrochemicals Ltd. Versus M/s ANS Constructions Ltd. & Anr. dt. 07.02.2018 :: Arbitration and Conciliation Act, 1996 - Discharge of a contract - Meaning of - Effect of  fraud/coercion/undue influence thereon - arbitrability of the dispute :: Discharge of a contract by an agreement signed by both the parties or by execution of a full and final discharge voucher/receipt by one of the parties, we refer to an agreement or discharge voucher which is validly and voluntarily executed. If the party which has executed the discharge agreement or discharge voucher, alleges that the execution of such discharge agreement or voucher was on account of fraud/coercion/undue influence practised by the other party and is able to establish the same, then obviously the discharge of the contract by such agreement/voucher is rendered void and cannot be acted upon. Consequently, any dispute raised by such party would be arbitrable. But in case the party is not able to establish such a claim or appears to be lacking in credibility, then it is not open to the courts to refer the dispute to arbitration at all.



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