Perils of signing discharge vouchers
It is common for the employer to demand discharge vouchers from contractors before paying the final amount. But this could lead to bitter litigation, as the dues could still be disputed. Two such cases were decided by the Supreme Court last week with opposite results. The first case was an appeal of the Railways, which claimed that its contractors had signed discharge vouchers and therefore, there was no need for arbitration. However, the Supreme Court ruled that an arbitration agreement will stand even if the contractors accepted an amount and signed discharge certificates in
It is common for the employer to demand discharge vouchers from contractors before paying the final amount. But this could lead to bitter litigation, as the dues could still be disputed. Two such cases were decided by the Supreme Court last week with opposite results. The first case was an appeal of the Railways, which claimed that its contractors had signed discharge vouchers and therefore, there was no need for arbitration. However, the Supreme Court ruled that an arbitration agreement will stand even if the contractors accepted an amount and signed discharge certificates in