24 Jun 2026 04:07 AM
Supreme Court
Supreme Court

Consumer Dispute -- Arbitration Clause in Agreement -- Jurisdiction of consumer forum not ousted

Consumer Protection Act, 1986, S.3 -- Consumer Dispute -- Arbitration Clause in Agreement -- An arbitration clause in a private agreement cannot oust the jurisdiction of a consumer forum. The Consumer Protection Act creates a special statutory remedy that is additional to and not in derogation of other remedies available in law. Once a complaint is admitted by the District Forum, S.12(4) of the Act places a clear restraint against transfer of the complaint to any other court, tribunal, or authority. A private contractual clause cannot defeat a statutory remedy expressly preserved by Parliament.

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