Arbitrability Of Tenancy Disputes: A Step In The Right Direction

OVERVIEW:

A long due controversy on arbitrability of tenancy disputes has finally been put to rest by the Hon'ble Supreme Court of India. A bench comprising of Hon'ble Justice N.V. Ramana, Justice Sanjiv Khanna and Justice Krishna Murari on 14 December, 2020 in the matter of "Vidya Drolia and others v Durga Trading Corporation" ('Vidya Drolia -II'),¹ has overruled the ratio laid down in Himangni Enterprises v. Kamaljeet Singh Ahluwalia('Himangi Enterprises')² and held that the tenancy disputes are now arbitrable as the Transfer of Property Act, 1882 ('TP ACT') does not foreclose arbitration, save and except for those tenancy disputes which are governed by rent control legislations as specific forums have been given exclusive jurisdiction to decide the special rights and obligations of the parties.