SBI GENERAL INSURANCE CO. LTD. vs KRISH SPINNING

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2024 Supreme(Online)(SC) 1862

LPC 3792/2024
`ITEM NO.20 COURT NO.1 SECTION III`
`S U P R E M E C O U R T O F I N D I A`
`RECORD OF PROCEEDINGS`
`Petition(s) for Special Leave to Appeal (C) No.3792/2024`
`(Arising out of impugned final judgment and order dated 01-12-2023`
`in PUAA No.209/2021 passed by the High Court of Gujarat at`
`Ahmedabad)`
`SBI GENERAL INSURANCE CO. LTD. Petitioner(s)`
`VERSUS`
`KRISH SPINNING Respondent(s)`
`(With I.R. and IA No.35984/2024-EXEMPTION FROM FILING C/C OF THE`
`IMPUGNED JUDGMENT)`

`Date : 16-02-2024 This petition was called on for hearing today.`
`CORAM :`

`HON'BLE THE CHIEF JUSTICE`

`HON'BLE MR. JUSTICE J.B. PARDIWALA`

`HON'BLE MR. JUSTICE MANOJ MISRA`
`For Petitioner(s)`
`Mr. Ketan Paul, AOR`
`Mr. Saurav Agrawal, Adv.`
`Mr. Madhav Misra, Adv.`
`Ms. Shubhi Pandey, Adv.`
`Ms. Chakshu Purohit, Adv.`

`For Respondent(s)`

`UPON hearing the counsel the Court made the following`

ORDER

1 Mr Ketan Paul, counsel appearing on behalf of the petitioner submits:

(i) The respondent issued a Consent Letter dated 24 December 2018, Digitally signed by CHETAN KUMAR Date: 2024.02.16 16:35:58 IST Reason:

Signature Not Verified which was followed by an Advance Discharge Voucher dated 4 January 2019 unequivocally agreeing to accept a sum of Rs 84.19 lakhs in full and final settlement;

(ii) Nearly ten months after the Advance Discharge Voucher, on 25 October 2019, the respondent sought a copy of the surveyor’s report without making any allegation of coercion;

(iii) The allegation that the respondent was coerced into agreeing to the settlement was raised only on 2 March 2020 in the letter of invocation.

2 Hence, it has been submitted that while it is true that the issue of accord and satisfaction can also be raised before the arbitrator, this is a clear case where such a recourse is not necessary bearing in mind the fact that the claim was settled. Counsel submits that this position is borne out by judgments of this Court under Section 11(6) of the Arbitration and Conciliation Act 1996.

3 Issue notice, returnable in four weeks.

4 Dasti, in addition, is permitted.

5 The respondent shall file its counter affidavit within a period of two weeks from the date of service of notice.

6 List the Special Leave Petition on 18 March 2024.

There shall be a stay of the arbitration proceedings till 18 March 2024.

(CHETAN KUMAR) (SAROJ KUMARI GAUR) A.R.-cum-P.S. Assistant Registrar

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