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Existence Of Arbitration Clause Doesn’t Limit Jurisdiction Of Consumer Forums Even After 2015 Amendment

In M/S. EMAAR MGF LAND LIMITED vs AFTAB SINGH, review petition was filed against the decision of the Supreme Court to allow the order of the NCDRC in rejecting the application filed by the appellant under Section 8 of the Arbitration Act.

Originally the respondent had filed an application before the NCDRC which was objected to by the appellant as an arbitration clauses existed in the agreement between the parties. The NCDRC referred the matter to a larger bench which decided that an Arbitration Clause in the afore-stated kind of Agreements between the Complainants and the Builder cannot circumscribe the jurisdiction of a Consumer Fora, notwithstanding the amendments made to Section 8 of the Arbitration Act.

Hearing the review petition, the Supreme Court clarified that in the event a person entitled to seek an additional special remedy provided under the statutes does not opt for the additional/special remedy and he is a party to an arbitration agreement, there is no inhibition in disputes being proceeded in arbitration. It is only the case where specific/special remedies are provided for and which are opted by an aggrieved person that judicial authority can refuse to relegate the parties to the arbitration.

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