In Brief
ONGC Mangalore Petrochemicals awarded a construction contract to ANS Constructions for site grading and road construction. After contract completion and submission of a final bill, ANS submitted a No Dues Certificate on 21 September 2012 and received the final payment of Rs. 20.34 crores on 10 October 2012. ANS later withdrew the certificate claiming it was obtained under duress and sought Rs. 96.88 crores for losses incurred during execution. The Supreme Court held that ANS failed to prima facie establish duress through credible evidence. The absence of contemporaneous protest, the month-long gap before withdrawal, the failure to raise claims during final bill settlement, and the voluntary conduct of both parties established valid discharge of the contract. No arbitrable dispute existed, and the High Court erred in directing arbitration under section 11 of the Arbitration and Conciliation Act, 1996.
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