Question

In which case the court said that only a consumer can choose whether to opt for arbitration or seek remedy before the forums established under consumer welfare legislations, after the dispute has arisen?

• A. Mandeep Singh v National Insurance Company Ltd and Anr. (2024)
• B. Indian Medical Association v V.P. Shantha and Others (1995)
• C. M. Hemalatha Devi & Ors. v. B. Udayasri (2024)
• D. Sehgal School of Competition v. Dalbir Singh (2008)

Hint:

The Supreme Court consistently protects consumers' rights. Even if a contract has an arbitration clause, the consumer retains the right to approach consumer courts. The Mandeep Singh case (2024) is a recent affirmation of this.

Answer 1

The Correct Option is A

This question deals with the important issue of whether an arbitration clause in a contract can prevent a consumer from approaching a consumer court.
The Supreme Court has consistently held that the remedies under the Consumer Protection Act are special remedies provided in addition to other laws.
In the recent 2024 judgment of Mandeep Singh v.
National Insurance Company Ltd.
, the Supreme Court strongly reaffirmed this position.
It held that the choice of forum rests with the consumer.
Even if a contract contains an arbitration clause, the consumer cannot be forced into arbitration and has the right to choose the remedy available under the consumer welfare legislation.