In October 2017, a division bench of the Hon’ble Supreme Court of India (“SC”) in the case of Himangni Enterprises vs. Kamaljeet Ahluwalia[1] (“Himangni Enterprises”) held that where the Transfer of Property Act, 1882 (“TP Act”) applied between landlord and tenant, disputes between the said parties would not be arbitrable, despite the existence of an arbitration clause. Thereafter, in February 2019, another division bench of the SC in the case of Vidya Drolia and Others vs. Durga Trading Corporation[2](“Vidya Drolia”) respectfully disagreed with the conclusion arrived at in Himangni Enterprises and consequently referred the matter to a larger bench to finally settle the issue on the arbitrability of tenancy disputes.
While the reference is pending adjudication by a larger bench of the SC, this article seeks to examine the prevailing law with regard to the above mentioned issue and whether the ruling in Himangni Enterprises is a binding precedent or whether it falls under an exception to the rule of precedents.
Read More : https://tlegal.com/blog-details/a-silent-exception-to-the-rule
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