SC Holds that Disputes Arising from the Transfer of Property Act, 1882 are Arbitrable

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Dec 31, 2020

SC Holds that Disputes Arising from the Transfer of Property Act, 1882 are Arbitrable

In Vidya Drolia and Ors. v. Durga Trading Corporation,^[1] the Supreme Court of India (‘SC’) overruled the decision in Himangni Enterprises v. Kamaljeet Singh Ahluwalia,^[2] and held that landlord-tenant disputes under the Transfer of Property Act, 1882 (‘TP Act’) and disputes under lease/tenancy agreements governed by the TP Act are arbitrable. However, landlord-tenant disputes which are covered and governed by rent control legislations would not be arbitrable, as a specific Court or forum has been given exclusive jurisdiction such situations. The Court also held that disputes relating to mortgage under the TP Act were incapable of being settled by arbitration as they involved rights in rem (against the world in general) as opposed to rights in personam.

[1] 2020 SCC OnLine SC 1018

[2] (2017) 10 SCC 706

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