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ARTICLE · 27 AUGUST 2024

Discharge Of Contract By Accord & Satisfaction: A Bar To Invoke Arbitration?

The Hon'ble Supreme Court of India, while dealing with an appeal arising out of an order passed by the Hon'ble Gujarat High Court ("GHC") thereby appointing a sole arbitrator despite the fact...

IndiaLitigation, Mediation & Arbitration

The Hon'ble Supreme Court of India, while dealing with an appeal arising out of an order passed by the Hon'ble Gujarat High Court ("GHC") thereby appointing a sole arbitrator despite the fact that the Respondent therein (Appellant before Supreme Court) opposed the appointment of arbitrator on the ground that the main contract stood discharged by "accord and satisfaction" so did the arbitration clause therein, took cognizance of all its earlier judgements passed under 1940 Act as well as under the 1996 Act (both prior to, and post, amendment of the Act on 23.10.2015) and held that whether there has been a discharge of contract or not, is a mixed question of law and fact and if the dispute arises as to whether the contract has been discharged or not, such a dispute is arbitrable as per the mechanism prescribed under the arbitration agreement contained in the underlying contract .

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