Consumer’s Right to Approach Consumer Forum Prevails Over Arbitration Clauses: Supreme Court
Consumer’s Right to Approach Consumer Forum Prevails Over Arbitration Clauses: Supreme Court Authored by: Abhishek Jat, Advocate In a significant ruling, the Hon’ble Supreme Court of India has reaffirmed that an arbitration clause embedded in an agreement cannot curtail the consumer's statutory right to seek redressal before a consumer forum. The judgment, delivered in M/S Citicorp Finance (India) Limited v. Snehasis Nanda , has reinforced the principle that consumer disputes, being matters of public policy, are non-arbitrable unless the consumer voluntarily opts for arbitration. Case Background The dispute arose when the respondent (complainant before the NCDRC) purchased a flat and availed a housing loan from ICICI Bank. Subsequently, a third party expressed interest in purchasing the flat, leading to an agreement where the buyer secured a home loan from Citicorp Finance. A purported tripartite agreement among the complainant, the buyer, and Citicorp Finance was entered...