Law of Contract
JUDGMENT
V.N. Khare, CJI
1. This appeal which arises out of a judgment and order dated 23-11-2001 passed by the High Court of Kerala at Ernakulam revolves round the question as to whether an arbitration clause in a contract agreement survives despite purported satisfaction thereof.
2. The parties to this appeal entered into an agreement for a project at Kayamkulam. Upon completion of the work the respondent herein submitted final bill which was allegedly not accepted by the appellant, where after they themselves prepared the final bill and forwarded the same along with a printed format being a "No Demand Certificate". The said "No Demand Certificate" was signed by the respondent herein which is in the following terms:
NO DEMAND CERTIFICATE
Name of package : Earth filling in Temporary Township Part - II Letter of award : LOA No. KYM/CS/89/022/NIT-005/LOA-065 dated 19.3.90 Name of the Contractor : Reshmi Construction, T.C. 4/1298, Keston Road, Kowdiar, P.O. Trivandrum-3
1. This is to certify that we have received all payment in full and final settlement of the supplied and services rendered and/or all work performed by us in respect of the above referred LOA/Contract and we have no other claims whatsoever final or otherwise outstanding against NTPC. We further confirm that we shall have no claim/demands in future in respect of this contract of whatsoever nature, final or otherwise."
2. We would now request you to please release our security deposit/contract performance Guarantee."
3. However, on the same day a letter dated 20-12-1990 was written by the respondent to the appellant stating:
"We have completed the aforementioned work in the Kayamkulam Super Thermal Power Project's temporary township area at Nangiarkulangara by the end of November 1990 itself. We had submitted a pre-final bill in November itself but the authorities denied the bill and insisted final bill. But when the alleged final bill was prepared the authorities insisted that a "No Demand
V.N. Khare, CJI
1. This appeal which arises out of a judgment and order dated 23-11-2001 passed by the High Court of Kerala at Ernakulam revolves round the question as to whether an arbitration clause in a contract agreement survives despite purported satisfaction thereof.
2. The parties to this appeal entered into an agreement for a project at Kayamkulam. Upon completion of the work the respondent herein submitted final bill which was allegedly not accepted by the appellant, where after they themselves prepared the final bill and forwarded the same along with a printed format being a "No Demand Certificate". The said "No Demand Certificate" was signed by the respondent herein which is in the following terms:
NO DEMAND CERTIFICATE
Name of package : Earth filling in Temporary Township Part - II Letter of award : LOA No. KYM/CS/89/022/NIT-005/LOA-065 dated 19.3.90 Name of the Contractor : Reshmi Construction, T.C. 4/1298, Keston Road, Kowdiar, P.O. Trivandrum-3
1. This is to certify that we have received all payment in full and final settlement of the supplied and services rendered and/or all work performed by us in respect of the above referred LOA/Contract and we have no other claims whatsoever final or otherwise outstanding against NTPC. We further confirm that we shall have no claim/demands in future in respect of this contract of whatsoever nature, final or otherwise."
2. We would now request you to please release our security deposit/contract performance Guarantee."
3. However, on the same day a letter dated 20-12-1990 was written by the respondent to the appellant stating:
"We have completed the aforementioned work in the Kayamkulam Super Thermal Power Project's temporary township area at Nangiarkulangara by the end of November 1990 itself. We had submitted a pre-final bill in November itself but the authorities denied the bill and insisted final bill. But when the alleged final bill was prepared the authorities insisted that a "No Demand