The Supreme Court overruled its 2017 landmark judgement in the Himangi Enterprises vs. Kamaljeet Singh Ahluwalia case.
It held that landlord-tenant disputes are arbitrable, as they are actions in “personam” not in “rem” except when they are covered by a specific forum created by rent control laws.
The three judges bench headed by NV Ramana observed, ” Landlord-tenant disputes are arbitrable as the Transfer of Property Act does not forbid or foreclose arbitration.”
The judgment has come from the bench of Justice NV Ramana, Justice Sanjiv Khanna, and Justice Krishna Murari.
The bench also held that the award passed in such a dispute between landlord and tenant can be executed like any other decree in civil court.
The Court observed that there is no provision in the Transfer of Property Act that bars arbitration.
The bench shed light that where the dispute is covered by any rent control legislation and any particular court or tribunal has been established for the same, then arbitration cannot be availed by parties.
The Court has also held that the arbitral tribunal shall be the preferred authority to settle the issue of non-arbitrability.