Section 8 of The Arbitration Act VI: Arbitrable Disputes

Posted on by Rudrajyoti Nath Ray

My Lord, Consumer-Disputes are Non-Arbitrable?

No.

Arbitration Act does not exclude jurisdiction of Consumer Forums to decide Consumer-Disputes under The Consumer Act [Skypak Couriers Ltd., (2000) 5 SCC 294]. If X opts for Arbitration, it may be possible to state, X cannot, subsequently, file a Complaint under The Consumer Act. However, National Seeds Corporation Limited, (2012) 2 SCC 506 holds, if X files a Complaint before a Consumer Forum as X-Consumer, on first instance, X cannot be denied an opportunity to contest that Complaint by invoking Section 8 of The Arbitration Act.

The above stated position of law, consequent to The Arbitration and Conciliation (Amendment) Act, 2015 has remained same and has been effectively considered by Hon’ble Justice Ashok Bhushan in M/s. Emaar MGF Land Limited v. Aftab Singh, Review Petition [Civil] Nos. 2629-2630 of 2018. It is not ‘decipherable from any material’ that the Amendment aimed to do away with special or additional remedies. National Seeds Corporation Limited is still ‘good law’. The Amendment does not interfere with jurisdiction of Consumer Forums to decide Consumer-Disputes. However, if Arbitration is ‘opted’ for by Aggrieved/X-Consumer, there is no ‘inhibition’ to ‘proceed’ with the possible Consumer-Dispute as an Arbitration-Dispute.

Booz Allen and Hamilton Inc., (2011) 5 SCC 532 referred to Non-Arbitrable Cases. Also, Vimal Kishor Shah, (2016) 8 SCC 788. The Amendment has not set Booz Allen at naught too. There is no such ‘legislative intendment’ or ‘contemplated consequence’.

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'The Last Word' seeks to include not only wise and witty sayings but also curiosities. These words are not of obligation but of delight. I am not alone in my refusal to believe, law is tedious. For all who escaped these percipient eyes, mea culpa maxima. History, after all, has many cunning passages, contrived corridors and issues.