Builders can’t force buyers to go for arbitration: NCDRC


By Accommodation Times Bureau

Real estate players cannot force buyers to settle their disputes through arbitration by restraining them from approaching consumer forums, India’s apex consumer commission has ruled.

A three-member bench of the National Commission Dispute Reddressal Corporation (NCDRC) has said it is not a compulsion for buyers to go for arbitration even if the seller-buyer agreement stipulates that disputes be settled through a private resolution mechanism. Builders had cited changes made in the Arbitration and Conciliation Act in 2015 to make the point that all cases of flat buyers be referred to arbitration.

Section 8 of the amended Arbitration Act says a judicial authority will refer for arbitration the cases where there is an arbitration agreement, and one of the parties files an application seeking arbitration before submitting their first statement on the dispute.

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