Consumer Protection Act, 1986, S.3 -- Consumer Dispute -- Arbitration Clause in Agreement
It is a well-settled position of law that an arbitration clause in a private agreement cannot oust the jurisdiction of a consumer forum. The Consumer Protection Act, 1986 creates a special statutory remedy that is additional to other remedies available in law, as expressly provided under Section 3 of the Act. Once a complaint is admitted by the District Forum, Section 12(4) of the Act places a clear restraint — the complaint cannot be transferred to any other court, tribunal, or authority. A private contractual clause cannot defeat a statutory remedy that Parliament has expressly preserved.
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