A bald plea of fraud, coercion, duress, or undue influence is not enough to undo settlement agreements.

JUDGMENT

Vibhu Bakhru, J. Wishwa Mittar Bajaj & Sons (hereafter `the appellant') has filed the present appeal under Section 37(1)(c) of the Arbitration and Conciliation Act (hereafter `the A&C Act') impugning an order dated 21.12.2017 (hereafter `the impugned order') passed by the learned Single Judge, whereby the appellant's application under Section 34 of the A&C Act, seeking to set aside an arbitral award dated 14.07.2017 (hereafter `the impugned award'), was rejected.

FACTUAL CONTEXT

2. On 18.04.2007, the respondent issued a Letter of Intent and awarded the work of construction of Towers (G, H, J & K) for Group Housing Project at Sector-82, Faridabad (hereafter `the Project') to the appellant. Subsequently, on 19.04.2007, the respondent issued a Work Order in favour of the appellant for completion of the Project. In terms of the Work Order, the effective date of commencement of works was 21.04.2007 and the scheduled date of completion of works was a period of twenty-one months from the date of possession of the site. The contract value of the Project was approximately Rs.16,48,14,449/-.

3. The execution of the works was prolonged beyond the agreed period of twenty-one months. The contract between the parties was foreclosed on 11.05.2010. On the same day, the appellant also signed an Indemnity cum Undertaking. The said undertaking stipulated that the appellant would be given an ad-hoc payment of Rs.15,00,000/- and the said amount would be disbursed within a period of twenty days from the date of signing of the final bill. The relevant terms of the Indemnity cum Undertaking executed between the parties, is set out below:

"WHEREAS the indemnifier has expressed its inability to proceed with the contract and has requested the indemnified vide its letter dated 10th May, 2010 to foreclose the contract and upon the said request, the indemnified has agreed to foreclose the contract vide its letter dated 11th May, 2010.

WHEREAS pending joint measurement of the work in order to ascertain the work completed by indemnifier and the reconciliation of accounts, the Indemnifier has requested the indemnified to release/pay an amount of Rs.15,00,000/- (Rupees Fifteen Lakhs Only) to settle the accounts with labour/staff, suppliers, sub-contractors etc in respect of the said Contract.

AND WHEREAS on such request the Indemnified has agreed to pay the amount of Rs.15,00,000/- (Rupees Fifteen Lakhs Only) in two installments of Rs.10, 00,000/- (Rupees Ten Lakhs Only) and Rs.5, 00,000/- (Rupees Five Lakhs Only) each to the indemnifier. The Indemnified is handing over a cheque of amount of Rs.10, 00,000/- (Rupees Ten Lakhs Only) vide cheque no. 368046 dated 11th May 2010 drawn on Punjab National Bank, Connaught Place, New Delhi110001 Branch to the Indemnifier at the time of execution of the present Indemnity cum undertaking.

The balance amount of Rs.5,00,000/- (Rupees Five Lakhs Only) shall be released and paid by the Indemnified on the Documentary proof shown by the Indemnifier to the Indemnified that the earlier amount of Rs.10,00,000/- (Rupees Ten Lakhs Only) was utilized by the Indemnifier for the purpose meant for as per the Terms of present Deed.

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1. That Indemnifier undertakes to utilize the amount of Rs.15,00,000/- (Rupees Fifteen Lakhs Only) received from the Indemnified, exclusively to settle the accounts with labour/staff, suppliers, sub-contractors etc and that the amount shall be utilized for the said purpose only.

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6. That the Indemnifier undertakes that it shall fully co-operate with the Indemnified for joint measurements, reconciliation of RMC and steel and shall assist the Indemnified to prepare the Final Bill. The Indemnifier undertakes that it shall assist the Indemnified in order to ensure that the joint measurements, reconciliation of RMC and steel and the final bill is prepared/completed within 30 days from the date of the present deed. The Indemnifier agrees, understands and undertakes that it shall receive