• Arbitration

A contract is signed with arbitration clause. Subsequently contract is terminated & settlement agreement is signed for one time payment as full & final settlement.Settlement agreement has a clause that  Original agreement stands terminated with the signing of settlement agreement. Also has a arbitration clause about settlement of any dispute arising out of this agreement
My question is-How to get amount of SD & amount due against termination as per contract conditions with other claims.With full & final payments & termination of original contracts arbitration clause can not be invoked.
Can Arbitration clause of settlement agreement be made applicable for claims
Asked 2 years ago in Business Law from New Delhi, Delhi
1) there is noavtio of contract . old contract stands superseded by subsequent agreement . 

2) arbitration clause in settlement agreement will not apply to unpaid claims of earlier contract . 

3) if you want to recover your SD and other amounts against unjust termination of contract dont sign settlement agreement . 

4) in the alternative settlement agreement should contain clause regarding SD and other amounts due and payable
Ajay Sethi
Advocate, Mumbai
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1220 Consultations
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1. The settlement agreement has superseded the original contract. 

2. The arbitration clause incorporated in the original agreement will not apply if the  said arbitration clause has not been retained in the settlement agreement.

3. All the claims would now be governed by the settlement agreement. Unless the settlement agreement expressly makes a provision for recovery of SD and other amounts against termination the recovery cannot be enforced. All the clauses in the original agreement are unenforceable after the execution of the settlement agreement.
Ashish Davessar
Advocate, Jaipur
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449 Consultations
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1. Well once the settlement if validly made brings the original agreement containing the arbitration clause to an end.
2. only if the it is shown that the settlement agreement was the by product of fraud and coercion , then and then only the aggrieved party can resort to arbitration clause.
2. An arbitrator can adjudicate whether any agreement has been made put of fraud, force or coercion.
3. Unless and until that happens you can readily settle the dispute.
Devajyoti Barman
Advocate, Kolkata
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54 Consultations
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1. You stated "full & final settlement.Settlement agreement has a clause that  Original agreement stands terminated with the signing of settlement agreement",

2. This clause is self explanatory and clearly answers your query,

3. The said arbitration clause will not permit you to raise any other claim after the claims have been fully and finally settled by both the parties.
Krishna Kishore Ganguly
Advocate, Kolkata
12131 Answers
233 Consultations
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on the signing of later contract you have novated the previous agreement with the condition of one time payment as full & final settlement. you can't invoke previous agreement because according to section 62 of contract act alteration in previous agreement with consent of both parties will cease the previous agreement for execution so previous agreement is dead for you.
Shivendra Pratap Singh
Advocate, Lucknow
2767 Answers
41 Consultations
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In later agreement you have agreed that issues will settled on the one time payment as full &  final settlement. this agreement will prevail and you have two options, firstly you can file application under specific relief act for the specific performation of contract and secondly you can file application for arbitration under section 7 of arbitration and conciliation act. in first option you can get order from the court for settlement of dispute by one time payment and in later option you can settle your issue either by one time payment or any other way. you have both option so now you can choose to whom you want to go.
Shivendra Pratap Singh
Advocate, Lucknow
2767 Answers
41 Consultations
4.9 on 5.0

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