Arbitration vs RERA | Harmony that can solve conflict?

Nipun Singhvi & Pranjul Chopra – [2022] 138 taxmann.com 192 (Article)

Introduction

The debate regarding enforcement of arbitration over other laws has been going on for a score and six years in our country. In various cases, the courts have come across the issue as to whether an arbitration clause bars proceedings under a specific act or not. A basic principle of law is that a specific statute prevails over a general one. However, the courts in our country have laid much emphasis on arbitration as an alternate form of dispute redressal mechanism and have time and again chosen arbitration over litigation as a legal recourse.

Further, availability of multiple fora for dispute resolution has burdened the courts with the question of which statute shall prevail over the other. For the consumers of real estate industry, remedies exist in the form of Real Estate Regulatory Authority, National Company Law Tribunal, Consumer Courts, Civil Courts and ADR mechanisms in form of arbitration. As regards, enforcement of arbitration in an ongoing litigation process specifically, its applicability depends much on the stage of litigation.

Therefore, before addressing the issue of applicability of arbitration in real estate disputes and a resultant bar on proceedings under the Real Estate (Regulation and Development) Act, 2016, it is imperative that the judicial pronouncements examining arbitration vis-à-vis other statutes be discussed.

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