IMPORTANT POINT
A victim of economic coercion forcing him to sign discharge voucher in full and final settlement can invoke arbitration clause in the contract.

JUDGMENT

S. RAVINDRA BHAT, J.

Leave granted. With the consent of counsel, the appeal was heard finally. The Oriental Insurance Co. Ltd (hereafter "the insurer" or "the appellant") appeals the decision of a single judge of the Bombay High Court, who allowed the respondent's application under Section 11(6) of the Arbitration and Conciliation Act, 1996 (hereafter "the Act") and appointed an arbitrator. The insurer's objection about maintainability of the application on the ground that the respondent (hereafter "Dicitex") had signed the discharge voucher and accepted the amount offered, thus, signifying accord and satisfaction, which in turn meant that there was no arbitrable dispute, was rejected.

2. The relevant facts in this appeal are that on 17.09.2011, Dicitex obtained a Standard Fire and Special Peril Policy; it was issued by the appellant to cover the stocks of goods lying in its three separate godowns located at Thane, Maharashtra, by three separate endorsements. The total sum insured was @ 13 crores. Clause 13 of the terms and conditions of the said policy contained an arbitration clause. On 25.05.2012, a fire broke out at night on the ground floor of the building occupied by RFCL, which fire spread to the first floor of the building and completely engulfed all of the appellant's three godowns which had stored its goods. All the stocks in all the three godowns were completely destroyed. Dicitex informed the appellant on 26.05.2012, about the fire and the consequential loss. The appellant appointed M/s. C.P. Mehta & Co. as Surveyors and Assessors to survey the loss suffered by Dicitex and to report on the claim to be lodged upon the insurer-appellant, by the said company. Dicitex lodged a total and final claim upon the appellant for a sum of Rs. 14,88,14,327/-comprising Rs. 13,52,85,752/- towards cost of the materials destroyed and Rs. 1,35,28,575/- as overheads. Dicitex claims also to have submitted comprehensive documentary evidence and detailed work sheets in support of the claim made to the insurer. On 14.08.2012, after visiting Dicitex's factory and the godowns, and after scrutinizing the materials submitted by it in support of its claim, the Surveyor appointed by the insurer filed a Final Survey Report recommending that the claim be settled for an amount of Rs. 12,93,26,704.98/- and that after deducting an amount of 5% towards compulsory deduction for excess, a net amount of Rs. 12,28,60,369/- be paid over to Dicitex. The latter alleged that a copy of this survey report was not supplied to it, by the insurer, or the surveyor.

3. On 20.09.2012, Dicitex addressed a letter to the appellant's chairman, informing him of the financial distress that it was facing, requesting for settlement of the claim on priority basis. Dicitex also informed him about a temporary loan obtained -to the tune of Rs. 10 crores- from Union Bank of India for 3 months at a high rate of interest which was due for repayment in September 2012 and requested him that it would be a great financial help if its claim could be settled on priority basis which would mitigate their hardship. Again, on 25.10.2012, Dicitex informed the insurer that the sale value of the goods destroyed was above 19 crores and that it had not only lost its goods but also its profits. Dicitex informed that it had already submitted all the documentary evidence supporting the claim to the Surveyor, M/s. C.P. Mehta & Co., yet another letter was addressed to the appellant's chairman on 31.10.2012 placing on record that it had understood from the surveyor M/s. C.P. Mehta & Co. that the Head Office of the appellant asked for some more information in connection with the claim. Dicitex stated that compiling, organizing and sending various documents totalling around 35,000 in number, entailed voluminous work. It was stated that the surveyor had already gone through those documents and had picked up at random, sample of various concerned records. Dicitex stated that it was arranging to compi