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No-Claim Certificate issued post due deliberations cannot be voided by party claiming duress

Case Law Details

TaxGuru Citation
2007 taxguru.in 31
Case Name
Mecon Ltd. Vs Pioneer Fabricators Pvt. Limited(Delhi High Court)
Date of Judgement/Order
Only available for paid members
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Whether the No-Claim Certificate issued after due deliberations could be voided by a party claiming duress & undue influence?

Delhi High Court followed the decision of SC in the case of  Chairman & MD NTPC Ltd. vs. M/s. Reshmi Constructions, Builder & Contractors JT 2004 (1) SC 1 wherein Hon’ble SC  had held that where there is evidence of the parties negotiating prior to a settlement taking place resulting in a full and final discharge voucher / receipt being executed, later-on the party executing the receipt cannot turn around and reprobate to claim that the settlement was not voluntary.

The Hon’ble Court held that the fact that parties were in discussions on the issue of payment for the extra work items undertaken by the Appellant and the exact work to be executed where-after the Respondent submitted its final bill followed by the No-Claim Certificate would be “clear cut evidence” to show that there was an accord on all disputes between the parties which was arrived at after protracted correspondence and claims in respect of the disputes settled in the accord could not have been raised and the accord reopened.

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