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ARTICLE · 20 NOVEMBER 2023

Whether A Consumer Forum Bound To Refer The Dispute To Arbitration Despite Existence Of A Valid Arbitration Agreement?

Smt. M. Hemalatha Devi & Ors. filed an Appeal before the Hon'ble Supreme Court of India challenging the impugned orders dated May 19, 2022 and November 25, 2022 passed by the Telangana High Court..

IndiaLitigation, Mediation & Arbitration

Introduction

Smt. M. Hemalatha Devi & Ors. ("Appellants") filed an Appeal1 before the Hon'ble Supreme Court of India ("Supreme Court") challenging the impugned orders dated May 19, 2022 and November 25, 2022 passed by the Telangana High Court ("High Court") which dismissed the application of the Appellants to appoint an arbitrator under Section 11 of the Arbitration and Conciliation Act, 1996 ("Act").

Facts

a. Smt. B. Udayasri ("Respondent") being a home buyer, had entered into an Agreement for Sale dated August 27, 2013 ("Agreement") with the Appellants who were the owners/builders. Pursuant to the Agreement, the Appellants had agreed to construct a residential house/ villa for the Respondent on or before February 27, 2017. However, in 2020, the Appellants sent a termination notice to the Respondent on the ground that the Respondent had not signed the "Construction Agreement". After sending the termination notice, the Appellant moved an application

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