Should Consumer Forums Refer Parties To Arbitration In Terms Of Valid Arbitration Agreement: SC To Examine [Read Order]

NCDRF had 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.The Supreme Court will examine an important question whether the amended section 8 of the Arbitration and Conciliation Act mandates the consumer forums to refer parties to arbitration in terms of. The Supreme Court will examine an important question whether the amended section 8 of the Arbitration and Conciliation Act mandates the consumer forums to refer parties to arbitration in terms of valid Arbitration Agreement. A bench of Justice AK Goel and Justice UU Lalit issued notice on a special leave petition against the order of National Consumer Dispute Redressal Commission in Aftab Singh vs M/s EMAAR MGF Land Ltd, and observed: “Shri Fali S Nariman learned senior counsel has invited our attention to the amended Section 8 of the Arbitration and Conciliation Act 1996. Consumer Forum needs not refer parties to arbitration, even if valid Arbitration clause exists A single member bench of the National Consumer Dispute Redressal Commission had referred the following question to the full bench: “Whether the newly inserted Sub-Section of Section 8 of the Arbitration Act mandates Consumer Forums, constituted under the Consumer Act, to refer parties to Arbitration in terms of valid Arbitration Agreement, notwithstanding other provisions of the Arbitration Act and the provisions of the Consumer Act?” The single bench had also observed that the Arbitration Clauses are generally contained in the Buyers’ Agreement between the builders and the purchasers of the plot and flats, and also in incorporation in the insurance policies and several other agreements which later on become the subject matter of the consumer disputes.