TMI Blog2013 (9) TMI 1207X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellant's part and claimed compensation to the tune of ₹ 17,41,09,000/- with cost of ₹ 1,00,000/-. 3. On being noticed by the National Commission, the Appellant filed a written statement to contest the complaint. It also filed an application Under Section 8 of the Arbitration and Conciliation Act, 1996 (for short, 'the 1996 Act') for making a reference to the arbitrator. 4. A two Member Bench of the National Commission referred the matter to the larger Bench. After considering the relevant statutory provisions and adverting to several judgments including the judgments in Fair Air Engineers (P) Ltd. v. N.K. Modi (1996) 6 SCC 385; Skypay Couriers Limited v. Tata Chemicals Limited (2000) 5 SCC 294; National Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Counsel for the Appellant, if the growers had applied for arbitration then in terms of Section 8 of the Arbitration and Conciliation Act the dispute arising out of the arbitration clause had to be referred to an appropriate arbitrator and the District Consumer Forums were not entitled to entertain their complaint. This contention represents an extension of the main objection of the Appellant that the only remedy available to the farmers and growers who claim to have suffered loss on account of use of defective seeds sold/supplied by the Appellant was to file complaints with the Seed Inspectors concerned for taking action Under Sections 19 and/or 21 of the Seeds Act. The consideration of this issue needs to be prefaced with a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the time being in force. (Emphasis supplied) 7. For taking the aforesaid view (paragraph 66), the Court relied upon earlier judgments in Fair Air Engineers (P) Ltd. v. N.K. Modi (supra), Skypay Couriers Limited v. Tata Chemicals Limited (supra) and Trans Mediterranean Airways v. Universal Exports and Anr. (2011) 10 SCC 316. 8. In the case of Fair Air Engineers (P) Ltd., this Court considered the provisions of the 1986 Act, the Arbitration Act, 1940 and held: It would, therefore, be clear that the legislature intended to provide a remedy in addition to the consentient arbitration which could be enforced under the Arbitration Act or the civil action in a suit under the provisions of the Code of Civil Procedure. Thereby, as se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n inference that the consumer forum is bound to make a reference to the Arbitral Tribunal. 10. In view of the above stated legal position, the National Commission did not commit any error by holding that the remedy of arbitration available to the complainant does not bar the jurisdiction of the consumer forums and the consumer forums are not under an obligation to refer the matter to the Arbitral Tribunal. 11. With the above observation, the appeal is dismissed. Before concluding, we record our strong disapproval of the mechanism employed by persons like the Appellant to frustrate one of the main objectives of the Consumer Protection Act, 1986, namely, expeditious disposal of the consumer disputes. The record of the case shows that di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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