Bombay HC: Acceptance Of Insurance Claim Under Protest Not 'Accord And Satisfaction

However, in the present case, there is no admitted claim, and the controversy concerns the application of the principle of accord and satisfaction in light of the claimant's letter dated 16th October 2018 and the discharge voucher signed under protest. I have already recorded reasons that the said letter and the discharge voucher cannot be accepted as a full and final settlement of the claim. Hence, in view of the well-established legal principles as discussed in the above paragraphs, the said letter and the discharge voucher cannot be accepted as accord and satisfaction of the claim. {Para 13}

 IN THE HIGH COURT OF BOMBAY

Commercial Arbitration Petition (L) No. 30675 of 2023

Decided On: 18.03.2026

Oriental Insurance Company Ltd. Vs. Add On Retail Pvt. Ltd.

Hon'ble Judges/Coram:

Gauri Godse, J.

Citation: 2026:BHC-OS:6861,MANU/MH/2641/2026

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Whether issues with regard to accord and satisfaction of claims or existence of dispute would be decided by Arbitral Tribunal?

Where there is contestation or the decision rendered by the General Manager leaves scope for argument as to whether

the claims lodged by a Contractor can be categorized as Notified Claims is best left to the Arbitral Tribunal. In other words, except for the situation where there is no doubt that the claims were not lodged with the Engineer and the Site Engineer as required under Clause 6.6.1.068 read with 6.6.3.069, the matter would have to be left for resolution by Arbitral Tribunal. II) Aspects with regard to accord and satisfaction of the claims or where there is a dispute will also have to be left to the Arbitral Tribunal. The position in law in this regard remains the same both pre and post amendment brought about in the 1996 Act after 23.10.2015. III) After the insertion of Subsection (6A) in 11 of the 1996 Act the scope of inquiry by the Court in a Section 11 petition, (once it is satisfied that it has jurisdiction in the matter) is confined to ascertaining as to whether or not a binding arbitration agreement exists qua the parties before it which is relatable to the disputes at hand.

IV) The space for correlating the dispute at hand with the arbitration agreement is very narrow. Thus, except for an open and shut case which throws up a circumstance indicative of the fact that a particular dispute does it not fall within the four corners of the arbitration agreement obtaining between the parties the matter would have to be resolved by an Arbitral Tribunal. In other words, if there is contestation on this score, the Court will allow the Arbitral Tribunal to reach a conclusion on way or another. This approach would be in

68 Supra 9, Page 8 69 Supra 7, Page 8

keeping with the doctrine of Kompetenz Kompetenz; a doctrine which has statutory recognition under Section 16 of the 1996 Act. 

 IN THE HIGH COURT OF DELHI AT NEW DELHI

Judgment pronounced on: 08.02.2019

 ARB.P. 115/2018

NCC LIMITED Vs   INDIAN OIL CORPORATION LIMITED 

CORAM:

HON'BLE MR. JUSTICE RAJIV SHAKDHER

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