THE CALCUTTA TRAMWAYS CO. LTD. vs THE CORPORATION OF CALCUTTA

The Supreme Court ruled that under Section 5 of the Calcutta Tramways Act, 1951, both the substantive right to payment of track rent and the procedural right to arbitration are preserved. The Court held that the arbitration clause in the agreements is valid and enforceable, affirming the High Court's decision that there exists a valid arbitration agreement between the appellant and the respondent. The judgment emphasizes that the substantive and procedural rights are interconnected and cannot be severed, thus ensuring the right to remedy is maintained.