HC: Defence of full and final settlement of a claim will not be considered by the Court while examining the petition under Section 11(6) of the Arbitration Act. Read Judgment

Justice Jyoti Singh, Delhi High Court stated that, “Defence of full and final settlement of a claim will not be considered by the Court while examining the petition under Section 11(6) of the Act”.

In the present case, Petition was filed under Section 11(6) of Arbitration and Conciliation Act, 1996 for appointment of Arbitrator. Respondent in the present case paid petitioner towards full and final settlement of claim; and thus, objected to appointment of arbitrator as there exists no dispute between parties.

The matter was settled between the parties without any fraud/undue influence/coercion and respondent did not deny existence of arbitration agreement between parties.

Prior to 2015 Amendment, law required court to go into whether accord and satisfaction has taken place and it has been now overruled; Section 11(6A) is confined to the examination of the existence of an arbitration agreement  and is to be understood in narrow sense as has been laid down in judgment M/S Duro Felguera S.A vs M/S. Gangavaram Port Limited.

 Supreme Court in the case of M/s. Mayavati Trading Pvt. Ltd. vs. Pradyuat Deb Burman, has held that the defence of full and final settlement of a claim will not be considered by the Court while examining the petition under Section 11(6) of the Act and same was reiterated by court in present case.

In view of the above said judgment of the Apex Court, HC Bench arrived at conclusion that the objection raised by the petitioner to the present petition cannot be sustained.

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