AIR 1957 PUNJAB 40 ::59 Pun LR 115 ::ILR (1957) Punj 382

Punjab High Court

Hon'ble Judge(s): Bhandari , C.J.

Arbitration Act (10 of 1940) , S.2(a), S.34— Supersession by new agreement of existing agreement to refer to arbitration - Duty of Court. An arbitration agreement may be superseded by a new agreement which has the effect of extinguishing the existing agreement or by the performance of the terms of the new agreement entered into in satisfaction of the prior agreement. The question whether the parties did in fact enter into a new agreement in substitution of the original agreement or whether the terms of the new agreement @page-Punj41 have been performed as satisfaction must be determined by the Court before it proceeds to enforce the arbitration clause. If accord and satisfaction is by substituted agreement it is a question of construction of that agreement whether it also extinguishes all pre-existing rights and obligations and totally discharges the original contract AIR 1953 Cal 642, Ref.(Para 3) AIR Man Arb. Act, S. 2 (a), N. 1; S. 34, N. 7 and 8. .....