New India Assurance Company Ltd. Vs. Genus Power Infrastructure Ltd.
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Head Note
The Arbitration and Conciliation Act, 1996 - Section 11
Arbitrable Dispute - Insurance Claim - Discharge Voucher - The plea raised by the respondent that he signed the discharge voucher under financial hardship held to be bereft of any details and particulars, and cannot be anything but a bald assertion -There was no protest or demur raised around the time or soon after the letter of subrogation was signed - The notice was issued nearly after three weeks -The financial condition of the respondent was not so precarious that it was left with no alternative but to accept the terms as suggested - Held that the discharge and signing of letter of subrogation were not because of exercise of any undue influence - Such discharge and signing of letter of subrogation was voluntary and free from any coercion or undue influence -Upon execution of the letter of subrogation, there was full and final settlement of the claim no arbitrable dispute existed so as to exercise power under section 11 of the Act - The High Court was not therefore justified in exercising power under Section 11 of the Act.
Topic(s)-Arbitrable Dispute - Insurance Claim - Discharge Voucher