VIDYA DROLIA vs DURGA TRADING CORPORATION

The Supreme Court addressed the issue of non-arbitrability in landlord-tenant disputes under the Transfer of Property Act, 1882, specifically questioning the precedent set in Himangni Enterprises v. Kamaljeet Singh Ahluwalia. The Court clarified that disputes governed by the Transfer of Property Act are arbitrable, thus overruling the previous stance that such disputes are contrary to public policy. The Court held that the jurisdiction to decide on non-arbitrability lies with the arbitral tribunal, not the court at the referral stage under Section 8 and Section 11 of the Arbitration and Conciliation Act, 1996.