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Vidya Drolia & Ors. v. Durga Trading Corporation

Civil Appeal · 2019 INSC 290Decided 28 Feb 2019
Civil Appeal No. 2402 of 2019
Justice Rohinton Fali Nariman · Justice Vineet Saran

Background

This is a referral order, not a final judgment. A tenant disputed whether a landlord-tenant dispute governed by the Transfer of Property Act, and not by a rent control law, can be sent to arbitration.

Decision Breakdown

This is a referral order, not a final judgment. The Court disagreed with its 2017 decision in Himangni Enterprises v. Kamaljeet Singh Ahluwalia, which held such disputes are not arbitrable, and referred the question to a bench of three judges. It lifted the stay on the arbitration so it could continue to an award, but the award cannot be executed without the Supreme Court's leave.

Lesson Learnt

There is no final ruling in this order. Whether tenancy disputes under the Transfer of Property Act can be arbitrated was left to a larger bench.

Official source (sci.gov.in)View Judgment (PDF)

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