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Arbitration Clauses In Builder-Buyer Agreement Cannot Oust The Jurisdiction Of Consumer Courts

In Aftab Singh v Emaar MGF Land Limited & Anr, the Full Bench was constituted pursuant to a referral by the Single Bench on 31 August 2016. In its decision of 13 July 2017, the NCDRC has once again reiterated that since the Consumer Courts are special courts constituted to serve a social purpose, the Amended Act does not apply to them. It held that an arbitration clause in a builder-buyer agreement cannot circumscribe the jurisdiction of the consumer forum irrespective of the amendments made to Section 8 of The Arbitration and Conciliation. (Amendment) Act, 2015.

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