Case title ; T.K.A. Padmanabhan vs. Abhiyan Cooperative Group Housing Society Ltd.
In a significant ruling strengthening consumer right, the Supreme Court clarified that the mere presence of an arbitration clause in an agreement does not affect the jurisdiction of the Consumer Forum, and a consumer is entitled to approach the Consumer Forum for the redressal of their grievance.
Delivering this important verdict in the case of *T.K.A. Padmanabhan vs. Abhiyan Cooperative Group Housing Society Ltd.*, a bench comprising Justice Vikram Nath and Justice V. Mohana set aside the orders passed by the National Consumer Disputes Redressal Commission (NCDRC), the State Commission, and the District Forum.
These earlier orders had referred the dispute
The case pertained to a delay in the possession of a flat and a ‘deficiency in service’. Citing the judgment in *Emaar MGF Land Ltd. vs. Aftab Singh* (2019) 12 SCC 751, the Supreme Court observed that the Consumer Protection Act, 1986, provides a special statutory mechanism for the resolution of consumer disputes, and this statutory right conferred by Parliament cannot be extinguished by the terms of a private contract. The Court clarified that once a consumer complaint is admitted, it cannot be transferred to another forum merely on the grounds of an arbitration clause.
The Supreme Court further held that an arbitration clause does not, by itself, oust the jurisdiction of the Consumer Forum, nor can a consumer be deprived of their statutory remedy. Additionally, the Court directed the District Consumer Forum to decide the matter on its merits and ensure its disposal, as far as possible, within a period of one year.
This verdict is significant for the millions of consumers who approach consumer commissions to safeguard their rights against builders, housing societies, or other service providers.
The Supreme Court’s decision reaffirms that the terms of private agreements cannot deprive consumers of the rights granted to them by law.
