In the Matter of M/S Emaar Mgf Land Limited vs Aftab Singh Complaint no. (2019) 12 SCC 751 decided on 10.12.2018 before Supreme Court of India
The appeals were filed challenging the order of National Consumer Disputes Redressal Commission (NCDRC) in Aftab Singh v. Emaar MGF Ltd., 2017 SCC OnLine NCDRC 1614 holding consumer disputes to be non-arbitrable.The respondent entered into a buyer’s agreement with the petitioner company for the purchase of a villa in the township to be developed by them. Dispute arose regarding the same. The respondent filed a complaint with NCDRC under Consumer Protection Act, 1986 for certain reliefs in the matter. The company relied on the arbitration clause provided in the agreement and filed an application under Section 8 of the Arbitration and Conciliation Act, 1996 for referring the matter to arbitration. This application was rejected by NCDRC. The company filed appeals against NCDRC order which was dismissed by the Delhi High Court as well as the Supreme Court.
The Hon'ble Supreme Court considered the provisions of Consumer Protection Act, 1986 & Once the public Statute is in place, Arbitration & Conciliation act 1996 can not be resorted to.It was observed that , “….complaint under Consumer Protection Act being a special remedy, despite there being an arbitration agreement the proceedings before Consumer Forum have to go on….” Thus, it was held that the Consumer Protection Act being special legislation, NCDRC was right in rejecting the company's application under Section 8 of Arbitration Act. Therefore, the review petition was dismissed.
