Union Of India (Uoi) vs Kishorilal Gupta & Bros. on 11 February, 1953
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 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 Union of India v. Kishorilal Gupta & Bros., AIR 1953 Cal 642 (A).