TMI Blog1995 (3) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... ch arose on account of the non-completion of the contract came to be settled by and between the parties and the settlement was reduced to writing as found in the document dated 28-12-1990 (Exh. 'F' at p. 236). By this document the disputes and differences were amicable settled by and between the parties in the presence of the Architect on the terms and conditions set out in clause 1 to 8 thereof. There is no dispute that the parties had, under the arrangement, arrived at a settlement in respect of disputes and differences arising under the contract then existing between the parties. This documents bears the signatures of the respective parties. There is also a reference in regard to discussion that had ensued prior in point of time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... voked and this Court held that under the said clause certain matters mentioned therein could be settled through Arbitration but once those were settled amicably by and between the parties and there was full and final payment as per the settlement, there existed no arbitrable dispute whatsoever and, therefore, it was not open to invoke the Arbitration clause. In the second mentioned case the respondent-Contractor acknowledged the receipt of the amount paid to him and stated that there was unconditional withdrawal of his claim in the suit in respect of the labour escalation. There was, thus, full and final settlement of the claim and it was contended that no arbitrable dispute survived in relation thereto. Other claims, if any, and which were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the payment made by the other side was only unilateral and hence the dispute subsisted and the Arbitration clause in the contract could be invoked. Therefore, that decision can be distinguished on facts. Even otherwise we feel that once the parties have arrived at a settlement in respect of any dispute or difference arising under a contract and that dispute or the difference is amicably settled by way of a final settlement by and between the parties, unless that settlement is set aside in proper proceedings, it cannot lie in the mouth of one of the parties to the settlement to spurn it on the ground that it was a mistake and proceed to invoke the Arbitration clause. If this is permitted the sanctity of contract, the settlement also bei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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