The Hon’ble Supreme Court of India analysed exhaustively provisions of the Arbitration and Conciliation Act, 1996 in the context of three major issues for determination.
- Whether the execution of a discharge voucher towards the full and final settlement
between the parties would operate as a bar to invoke arbitration?
- What is the scope and standard of judicial scrutiny that an application under
Section 11(6) of the Act, 1996 can be subjected to when a plea of “accord and
satisfaction” is taken by the defendant?
- What is the effect of the decision of this Court in In Re: Interplay Between
Arbitration Agreements under the Arbitration and Conciliation Act 1966 and the
Indian Stamp Act 1899 on the scope of powers of the referral court under Section
11 of the Act, 1996
Conclusion:
“The existence of the arbitration agreement as contained in Clause 13 of the insurance policy is not disputed by the appellant. The dispute raised by the claimant being one of quantum and not of liability, prima facie, falls within the scope of the arbitration agreement. The dispute regarding “accord and satisfaction” as raised by the appellant does not pertain to the existence of the arbitration agreement, and can be adjudicated upon by the arbitral tribunal as a preliminary issue.” Judgement can be accessed here.