Presence of Arbitration Clause in an agreement does not bar the Jurisdiction of a Consumer Fora

Presence of Arbitration Clause in an agreement does not bar the Jurisdiction of a Consumer Fora

National Consumer Disputes Redressal Commission, in its decision on November 8, 2021, reiterated that presence of an Arbitration clause in the agreement does not bar the jurisdiction of a Consumer Fora. [Ansal API Megapolis Buyers v. Ansal Hi-Tech Townships Ltd, Consumer Case 1467 of 2015]

President, RK Agrawal and Dr. SM Kantikar, Member, while relying on Supreme Court decision in Emaar MGF Land Ltd. v. Aftab Singh, (2015) CPJ 5 (SC), allowed the complaint directing respondents to refund the amount deposited by each of the Complainants along with an interest of 9% per annum from the date of deposit till the date of actual refund within 6 weeks, failing which the rate of interest shall increase from to 12% per annum.

It was alleged by the complainants that the project in which they intended to obtain a flat was in a state of dormancy, even after 8 years from the date of booking.

Further, the unexpected delay in developing and constructing the project/facilities, clearly amounted to deficiency in service and must be remedied with refund of the principal amount.

Opposite Party in its reply contended that as per clause 33 of the Agreement executed between the parties, all or any dispute arising out of or touching upon the Agreement, including its interpretation/validity and the respective rights/obligations of the parties were to be settled by mutual discussion, failing which the disputes were to be settled through Arbitration.

It was further argued that the Complainant had no privity of contract with the Opposite Party and no relief can be granted to the said Buyer's Association.