Legal Question in Consumer Law in India

Dear Sir,

I have purchase a flat and when the possesion is nearer the builder is asking for more amount of 10 lacs. When I refer to the sell agreement there is no such clause mentioned for the increase in price at future period. But there is a clause mentioned in agreement that "In the event of breach of the terms of this agreement to sell or in the event of any differences or disputes arising between the parties in regrad to this agreement or any matter reating thereto, the same shall be reffered to a sole Arbitrator to be appointed by the builder/seller and his award shall be final and binding on the parties hereto and Arbitration shall be as per the Provisions of the Arbitration and Conciliation Act in force".

In this condition Can I file a case at Consumer Court for the dispute without approaching arbritator? Can you breif on what exactly the "Arbitration and Conciliation Act" means and how consumer can be benefited out of it.

Asked on 9/15/13, 11:15 am

1 Answer from Attorneys

Fca Prashant Chavan Expert Edge LLP


Dear Sir / Madam,

You should first ask the Builder to clarify in writing the reason for which he is demanding Rs.10 lakhs from you. Based on the Builder's reply, you will be in a better position to decide on the further line of action. Even though the Agreement refers to an Arbitrator, you can still file your case in the Consumer Court for redressal.


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Answered on 9/15/13, 10:57 pm

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