Consumer disputes remain non-arbitrable despite arbitration clauses after the amended Section 8 framework.

The 2015 amendment to Section 8 of the Arbitration and Conciliation Act, 1996 narrows judicial scrutiny to the existence of a prima facie valid arbitration agreement, but it does not override special statutory remedies or make non-arbitrable disputes arbitrable merely because an arbitration clause exists. Section 2(3) preserves laws excluding certain disputes from arbitration, and the Consumer Protection Act, 1986 continues to confer an additional beneficial remedy. Consumer disputes were therefore treated as remaining outside compulsory reference to arbitration, and consumer fora may proceed despite an arbitration agreement.

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Issues: Whether, after the 2015 amendment to Section 8 of the Arbitration and Conciliation Act, 1996, a consumer dispute covered by the Consumer Protection Act, 1986 can still be refused reference to arbitration on the basis that such disputes are non-arbitrable and that the consumer forum may continue with the complaint despite an arbitration clause.

Analysis: The amended Section 8 narrows judicial scrutiny to the existence of a prima facie valid arbitration agreement and introduces a non obstante clause against prior judgments, but that amendment was held to address the scope of judicial intervention in arbitrable disputes and not to override special or additional statutory remedies. Section 2(3) of the Arbitration and Conciliation Act, 1996 preserves laws under which certain disputes are not submitted to arbitration, and the Consumer Protection Act, 1986 was reiterated to confer an additional and beneficial remedy that is not taken away by an arbitration clause. The settled line of authority treating consumer disputes as non-arbitrable and permitting consumer fora to proceed despite arbitration agreements was held to remain unaffected by the amendment.

Conclusion: The rejection of the Section 8 application was upheld, and consumer disputes under the Consumer Protection Act, 1986 were held to remain capable of being pursued before the consumer fora notwithstanding an arbitration agreement.

Ratio Decidendi: The 2015 amendment to Section 8 of the Arbitration and Conciliation Act, 1996 limits refusal of reference on the basis of arbitration agreement validity, but it does not displace special statutory regimes conferring additional remedies or render non-arbitrable disputes arbitrable merely because an arbitration clause exists.

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