Chapter: 3.1.2 Maintainability of Complaints

Maintainability of Complaints:

When an agreement provides for ARBITRATION.

Principle laid down:
"A consumer may approach the Redressal Forum without resorting to arbitration clause in the Act or contract."

The above are the findings of the National Commission in the matter of UNION OF INDIA & ORS. (Appellants) v/s M/s JAGADAMBA RICE MILLS (Respondent) II- 1992 (1) CPR 293 (N.C) while adjudicating a claim in respect of loss suffered by a Respondent on the grounds that telex communication did not work for large spans of the time and was disconnected by the department arbitrarily. The National Commission held that arbitration clause under Section 7B of the Indian Telegraph Act will not oust the jurisdiction of Consumer Forum and the plea that dispute of this nature is to be raised u.s. 7B of the Indian Telegraph Act is not sustainable. It further held that ultimate relief which a complainant can get under Sec. 7B of Indian Telegraph Act, obviously can not stand in the way of speed and effective relief which can be granted- by Consumer Forum. The Forum has approvingly referred to its earlier decision in UNION OF INDIA v/ s NILESH AGARWAL, R.P. NO. 1 of 1989 (N.C)