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Consumer Forums Needn’t Refer Parties To Arbitration In Terms Of Valid Arbitration Agreement

In M/S EMAAR MGF LAND LIMITED vs AFTAB SINGH, the Supreme Court has upheld the National Consumer Dispute Redressal Commission (NCDRC) order that held that arbitration clause in the agreements cannot circumscribe the jurisdiction of a consumer fora, notwithstanding the amendments made to Section 8 of the Arbitration Act. 

Earlier, the three-member bench of the NCDRC had made the following observations:

* The disputes which are to be adjudicated and governed by statutory enactments, established for specific public purpose to sub-serve a particular public policy are not arbitrable;
* There are vast domains of the legal universe that are non-arbitrable and kept at a distance from private dispute resolution;
* The subject amendment was meant for a completely different purpose, leaving status quo ante unaltered and subsequently reaffirmed and restated by the Hon’ble Supreme Court;

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