Demystifying The Conundrum Surrounding The Non-Arbitrability Of Disputes In Arbitration

The decade-old uncertainty on the issue of arbitrability of tenancy disputes stands settled with the pronouncement of the judgment by the Hon'ble Supreme Court in,  Vidya Drolia and Others v. Durga Trading Corporation¹ ("Vidya Drolia II/Judgment"). The Judgment, overruling the earlier position laid down in Himangni Enterprises v. Kamaljeet Singh Ahluwalia² ("Himangni Enterprises"), provides much-needed clarity on the nature of tenancy disputes that can be referred to arbitration. The Dovetail Test laid down by the Court can be relied upon in determining the non-arbitrability of disputes in general. The Judgment also attempts to clear the conundrum surrounding the issue as to which forum would decide the issue of non-arbitrability, Court or the Arbitral Tribunal?