Arbitration clauses in Agreements Can't Override a Consumer’s Right to Redress in a Consumer Forum

The Supreme Court reaffirmed that arbitration clauses in agreements do not override a consumer's right to approach the Consumer Forum. A consumer cannot be forced into arbitration solely due to an arbitration clause.

In this case, the respondent took an ICICI Bank loan to buy a flat and later signed a tripartite agreement with Citicorp Finance, which included an arbitration clause.

When a dispute arose, the respondent filed a complaint in NCDRC, which ordered Citicorp to pay ₹13,20,000 plus litigation costs.

Citicorp appealed, but the Court upheld the ruling, citing Emaar MGF Land Ltd. v. Aftab Singh (2019) and M. Hemalatha Devi v. B. Udayasri (2024).