Article

Arbitrability of disputes post execution of 'unconditional discharge vouchers' – An analysis

By Dinesh Babu Eedi and Manasa Tantravahi

One of the common defenses taken by a party, facing a claim in an arbitration is that the contract has already been discharged by performance, however, it is not uncommon for the claimant to dispute the discharge voucher signed by it and claim that it was executed under fraud, coercion or undue influence. The article in this issue of Corporate Amicus discusses elaborately a recent decision of the Supreme Court where the question before the Court was whether the party had executed the unconditional discharge voucher under coercion, duress or undue influence, thereby, making the dispute arbitrable. According to the authors, the case has re-emphasized the principles and provides some relief to a party that may be compelled to accept a “take it or leave it offer”, particularly, in the current economic situation. If the party is able to demonstrate a prima facie case that the discharge voucher was signed under economic and financial distress, the dispute becomes arbitrable and the party gets an opportunity to raise its claims before the arbitrator...

Notifications and Circulars

• Government companies – New requirements notified for removal of names
• Time frame to conduct board meetings through VC/OAVM extended
• Independent directors – Time limit for inclusion in data bank extended
• Scheme for relaxation of filing forms related to creation or modification of charges under Companies Act, 2013 introduced
• Deposit reserve under Section 73(2)(C) of Companies Act, 2013 and Rule 18 of Companies (Share Capital & Debentures) Rules, 2014 – Compliance date extended to 30-09-2020
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