New Delhi, March 24 -- The Supreme Court has reaffirmed that an arbitration clause in an agreement does not override a consumer's right to seek redressal before the Consumer Forum.
The Court held that a consumer cannot be compelled to resolve disputes through arbitration solely because such a clause exists in an agreement. Instead, the consumer has the exclusive right to choose between arbitration and approaching the Consumer Forum.
A bench comprising Justice Sudhanshu Dhulia and Justice Ahsanuddin Amanullah heard the case concerning a disputed tripartite agreement that contained an arbitration clause.
The dispute arose when the respondent, who had purchased a flat with a housing loan of Rs. 17,64,644 from ICICI Bank, sought to sell the...