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2020 (6) TMI 828 - HC - Indian LawsSeeking to appoint an Arbitrator for resolution of disputes between the parties - construction of ADM-cum- Tech Accommodation (13) rooms at Hakimpet, Hyderabad - accord and final satisfaction as pleaded by the respondents through the Final Bill, as pleaded by the respondents in terms of Condition No.65 of IAFW 2249 (GCC) - applicant prima facie established coercion and undue influence in signing the Final Bill or not. HELD THAT:- It is pertinent to note that the applicant failed to offer any plausible explanation for not raising the issue of coercion and undue influence immediately after payment under Final Bill. The applicant, after receiving the payments under Final Bill, had signed ‘no further claim’ certificate. Since the full and final payment is made in the Final Bill and the applicant signed ‘no further claim’ certificate, as the arbitration application is liable to be dismissed on that ground alone, since the applicant signed the same without any protest/objection. A party who comes to the court, must come with clean hands. When fraud, undue influence and coercion is pleaded, at least some factual foundation must be laid in the pleadings, which is lacking - In the present application, by way of passing reference made allegations of undue influence and coercion, as such, this application is liable to be dismissed on that ground alone. When once there is full and final satisfaction, there exists no arbitral dispute, as rightly contended by the learned counsel for the respondents. Since invocation of arbitration is prior to Amendment Act, 2015, the provisions of said Act, 2015 are not applicable to such arbitral proceedings which have commenced in terms of the provisions of Section 21 of the Principal Act, unless otherwise agreed by the parties - When once one of the parties adopts a path of full understanding and executes a document in furtherance of the same, it is not open to him to take recourse of arbitration thereafter. In the decision relied upon by the learned counsel for the respondents in PK. RAMAIAH VERSUS C& MD NATIONAL THERMAL POWER CORPORATION NTPC [1993 (10) TMI 346 - SUPREME COURT], the Hon’ble Apex Court held that if accord and satisfaction is established, no arbitral dispute exists for referring the matter to arbitration. There is no merit in the Arbitration Application. Accordingly, the same is dismissed.
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