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Consumer courts can try cases despite arbitration clause

  • Consumer courts can try cases despite arbitration clause

    Summary: CHENNAI: Merely because there is an arbitration clause in the terms of agreement between a consumer and service provider, it does not prohibit a consumer forum from trying the case, said the district consumer forum, Chengalpet in Chennai, underling a legal precedent. Shakkira issued a legal notice to the service provider in December 2010, which, also was not replied to. So it was beyond the ambit of the forum to try the case. The disruption in services was because of satellite failure-an unforeseen fault-which had disrupted connection of more than six million customers. The fault was attended to, but Shakkira was also not able to watch various channels as she did not renew the subscription, it said.

    CHENNAI: Merely because there is an arbitration clause in the terms of agreement between a consumer and service provider, it does not prohibit a consumer forum from trying the case, said the district consumer forum, Chengalpet in Chennai, underling a legal precedent. It then fined a private Tamil TV channel provider of 15,000 for deficiency in services.According to M Shakkira Banu of Ayanavaram , she had subscribed the services of Sun Direct TV in May 2009 after paying 2,250, including installation charges and basic plan, for one year. From July 2010, she was not able to watch all the channels she had subscribed to, and her complaint was not rectified after she paid the monthly subscription charge.

    Shakkira issued a legal notice to the service provider in December 2010, which, also was not replied to. She then moved the district consumer disputes redressal forum claiming compensation for deficiency in services.In its counter, Sun Direct said according to the terms of the agreement, any dispute could be resolved only through arbitration. So it was beyond the ambit of the forum to try the case.

    Source: http://timesofindia.indiatimes.com/city/chennai/Consumer-courts-can-try-cases-despite-arbitration-clause/articleshow/54819767.cms


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