KAPOOR CONTRACTOR Vs. UNION OF INDIA
LAWS(P&H)-2014-5-6
HIGH COURT OF PUNJAB AND HARYANA
Decided on May 01,2014

Kapoor Contractor Appellant
VERSUS
UNION OF INDIA Respondents

JUDGEMENT

SANJAY KISHAN KAUL - (1.) SANJAY KISHAN KAUL .J. (Oral) The petitioner has filed the present petition under section 11 of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as 'the said Act') seeking appointment of an Arbitrator qua the disputes arising from the contract inter -se the parties dated 27.10.2010 for the work of galvanized steel metallic false ceiling under side of exposed surface in existing tublar sheet at platform No. 2/3 of the Attari Railway Station. The petitioner was the successful tenderer of this contract and had been communicated so vide acceptance letter dated 11.09.2010. The arbitration clause inter -se the parties is as per the General Conditions of Contract, 1999.
(2.) THE petition is resisted by the respondents with the main defence arising from the supplementary agreement dated 05.09.2011 which acknowledges full accord and satisfaction of all the claims of the petitioner. This agreement is not in dispute. The contents of the agreement read as under: - "SUPPLEMENTARY AGREEMENT Articles of agreement made this 5th day of the month of September the year Two thousand, 2011 between the President of India acting through the Deputy Chief Engineer/Construction, Northern Railway Administration having his office at Jalandhar City, hereinafter called the Railway of the one part and M/s Kapoor Contractor/Race Course Road, Opp. IMA House, Basant Avenue, Amritsar of the second part. Whereas the party hereto of the other part executed an agreement with the party hereto of the first part being agreement Number 314 - A/CS/DYCE,C/JUC dated 27.10.2010 for the performance provision of galvanized steel metallic false ceiling on the exposed surface of Attari Railway Station, hereinafter called the "Principal Agreement". And whereas it was agreed by and between the parties hereto that the works would be completed by the party hereto of the second part on 30.05.2011, 'date last extended' and whereas the party hereto of the second part has executed the work to the entire satisfaction of the party hereto of the first part. And whereas the party hereto of the first part already made payment of the party hereto of the second part diverse sums from time to time aggregating to Rs. 8171372.50 including the final bill bearing voucher No. 158C/ DYCE,C/JUC dated 5.9.2011 (the receipt of which is hereby acknowledged by the party hereto of the second party in full and final settlement of all his/its claims under the Principal Agreement. And whereas the party hereto of the second part have received further sum of Rs. 86,34,93/ - through the final bill bearing voucher No. 158C/ DYCE,C/JUC dated 5.9.2011 (the receipt of which is hereby acknowledged by the party thereto of the second part) from the party hereto the first part in full and final settlement of all his/its disputed claims under Principal Agreement. Now it is hereby agreed by and between the parties in the consideration of sums already paid by the party hereto of the first part of the party hereto of the second part against all outstanding dues and claims for, all works done under the aforesaid Principal Agreement including/excluding the security deposit the party hereto of the second part have no further dues of claims against the party hereto the first part under the said Principal Agreement. It is further agreed by and between the parties that the party hereto of the second part has accepted the said sums mentioned above in full and final satisfaction of all its dues and claims under the said Principal Agreement. It is further agreed by and between the aprties that the party hereto of the second part has accepted the said sums mentioned above in full and final satisfaction of all its dues and claims under the said Principal Agreement. It is further agreed and understood by and between the parties that in consideration of the payment already made, under the agreement, the said Principal Agreement shall stand finally discharged and rescinded all the terms and conditions including the arbitration clauses. It is further agreed and understood by and between the parties that in consideration of the payment already made, under the agreement, the said Principal Agreement shall cease to have any effect and/or shall be deemed to be non -existent for all purposes." A reading of the aforesaid supplementary agreement shows that a sum of Rs. 8,63,493/ - has been stated to be finally payable in terms of the supplementary agreement and there are no further dues or claims. The amount is stated to be in full and final satisfaction of all the dues and claims payable under the 'Principal Agreement' and the acceptance by the petitioner of the amount is in full and final satisfaction. The Principal Agreement stood discharged and rescinded including the arbitration clause on execution of this document. The bill which determines this amount to Rs. 8,63,493/ - is annexed as Annexure R -2 alongwith the voucher for payment. This voucher contains an endorsement from the petitioner "no claim, full and final measurement accepted".
(3.) HAVING executed the supplementary agreement and accepted the amount in full and final satisfaction, there was silence on the part of the petitioner till the legal notice is stated to have been issued on 07.04.2012 followed by a reminder dated 24.12.2012. Thus it is only after eight months that the petitioner has woken up for his alleged further claim. There is, however, no reference to the supplementary agreement in any of these documents as conceded by learned counsel for the petitioner since he was called upon to point out. It is only in the replication for the first time, as conceded by learned counsel for the petitioner, while responding to the allegations of the respondents that the plea is sought to be raised about economic duress and pressure. Thus, this plea has been raised in the replication for the first time before this Court.;


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