R. Narayana Pisharadi, J.

What is the legal effect of the receipt signed and issued by the appellant to the respondent insurance company stating that he had received the amount “in full and final settlement” of the claim? This is the issue for consideration in this appeal.

2. The appellant was conducting a textiles shop. On 31.07.2004, he had insured the stock in his shop with the respondent insurance company for Rs.42,50,000/-. On 16.09.2004, a fire broke out in his shop. The entire stock in the shop was destroyed in the fire.

3. On 09.10.2004, the appellant made a claim for Rs.40,76,000/- to the respondent. The surveyor appointed by the respondent had inspected the shop on different dates starting from 17.09.2004. As per the report dated 16.12.2004, the surveyor assessed the loss at Rs.19,84,602/-

4. The respondent demanded additional documents from the appellant to verify the correctness of the inventory furnished by him. Meanwhile, correspondence had taken place between the appellant and the respondent. The appellant sent a letter dated 08.03.2005 to the respondent expressing his consent for accepting the claim on non-standard basis at 80% of the amount of loss assessed b