• Arbitrable dispute

contractor is constructing a housing complex. contract has arbitration clause. contract is terminated through a mutually agreed settlement agreement.quote  mutually agreed for one time settlement as full & final settlement to settle the bills & such other bills & claims-----------have mutually agreed in their own free will to pay Rs---------towards full & final settlement of all dues.Also has a clause that all original agreements shall stand termi nated upon execution of this settlement agreement. 
This settlement agreement has an arbitration clause also  quote In the event of this agreement   between the parties--------------------be subject to arbitration by an arbitrator to be appointed with mutual consent as per arbitration act 1996.question is-ourt How to claim the amount of SD deducted from RA bills,How to claim termination amount payable as per contract condition.Since as per various court rulings once there is full & final settlement arbitration clause can not be invoked .Secondly does arbitration clause of settlement agreement  applicable only to settlement agreement clauses Or can be invoked to claim unpaid amounts/claims.
Asked 2 years ago in Business Law from New Delhi, Delhi
1) it is well settled law that once the applicant having accepted the full and final payment is estopped from raising the dispute even as per original contract which stood discharged and, therefore, no aribtrable issue is involved

2) Once there is a full and final settlement in respect of any particular dispute or difference in relation to a matter covered under the arbitration clause in the contract and that dispute or difference is finally settled by and between the parties, such a dispute or difference does not remain to be an arbitrable dispute and the arbitration clause cannot be invoked even though for certain other matters, the contract may be in subsistence. 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 to proceed to invoke the arbitration clause. If this is permitted the sanctity of contract, the settlement also being a contract, would be wholly lost and it would be open to one party to take the benefit under the settlement and then to question the same on the ground of mistake without having the settlement set aside.

3) arbitration clause in settlement agreement will be applicable only to settlement agreement clause s and not towards unpaid claims
Ajay Sethi
Advocate, Mumbai
23367 Answers
1224 Consultations
5.0 on 5.0
1. Since in theses settlement agreement also there is arbitration clause you can well invoke the same and send him a letter asking for appointment of arbitrator to adjudicate your claim.
2. Before doing so, do send him a letter placing your demand in writing.
3. if the other party refuses to go for appointment of an arbitrator then you can apply to the High Court for appointment of an arbitrator.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
Since it is the integral part of settlement amount , you can well raise this issue through arbitration.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
1. If payment is received as per the terms mentioned in the full and final settlement agreement and the parties have complied with the mentioned terms, the dispute is finally settled by both the parties leaving no scope for any dispute,

2. The Arbitration Clause in the settlement agreement will cover the said settlement agreement only.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
1. The claim in connection with 'SD /Termination amount' should have been mentioned in the said settlement agreement,

2. Arbitration clause will not permit addition of further claims since in such case the said full and final settlement agreement will neither attain entirity nor finality.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
1) as mentioned earlier old contract stands superseded with the execution of settlement agreement . 

2) once you have accepted X amount in full  and final settlement of your claims you cannot make any claims for unpaid bills/ termination amount etc
Ajay Sethi
Advocate, Mumbai
23367 Answers
1224 Consultations
5.0 on 5.0
1. The original contract has been superseded by the subsequently executed settlement agreement. 

2. All the rights and liabilities created by the original agreement, not retained by the settlement agreement, have become unenforceable.
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
1. Once the payment has been accepted in full and final in accordance with the settlement agreement, the claims which were made under the original agreement cannot be enforced now. 

2. The original agreement has been superseded except to the extent its provisions have been preserved by the settlement agreement. The claim of SD and the amount payable against termination cannot be enforced if the settlement agreement does not make a scope for it.
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Business Lawyers

T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23367 Answers
1224 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
Nadeem Qureshi
Advocate, New Delhi
3537 Answers
130 Consultations
4.9 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2771 Answers
41 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
873 Answers
43 Consultations
5.0 on 5.0
Lakshmi Kanth
Advocate, Hyderabad
230 Answers
2 Consultations
4.8 on 5.0
Shashidhar S. Sastry
Advocate, Bangalore
1242 Answers
59 Consultations
5.0 on 5.0