Supreme court on arbitrability of the landlord and tenant disputes under transfer of property Act 1882


INTRODUCTION TO LANDLORD AND TENANT :-

Where the right to enjoy an immovable property is transferred to another person for a specific period of time in consideration , which is given periodically or on a specific occasions by transferee to the transferor , it is called a lease . After a lease tenancy comes into existence where the transferor or lessor known as landlord or the lessee become the tenant . Section 105 of TPA defines the terms of lease , lessor , lessee , premium and rent.For the essentials of lease there must be competent parties , rent , right of possession , time period etc.

Rights and duties of landlord :-


According to section 108 of TPA ,the landlord or the lessor of property possesses following rights and duties after a lease agreement.

Right to receive rent on the property from tenant .
Right to re possession on the property .
Duty to disclose material defect on property to tenant .
Duty to give possession to the tenant .
Duty to give enjoyment to the tenant on the property .

Rights and duties of tenant



Section 108 of TPA mentioned some rights of tenant .


Right to enjoyment on the property .
Right to remove all things fixed or attached by the tenant to the tenanted premises .


Right to deduct outgoings such as payment of public charges like tax revenue etc is the duty of the landlord .


4 Right to deduct costs of repairs

5. Right to remove crops .

Section 108( B) clause (k) to (q) lay down the liabilities of the tenant .


1 Duty to disclose facts known to him which increases the value of property.

2. Duty to pay rent or premium to the landlord.
3. Duty to maintain the property .

4. Duty to use property reasonably.

5. Duty to restore the property.


6. And there are so many duties on tenant which must be performed by the tenant.

Reasons for disputes between landlords and tenants

There are so many reasons to arises disputes between landlords and tenants.
When tenant defaults to paying rent on time .
When tenants breach the conditions of lease terms.
Unlawful and inappropriate behaviour of tenants.
When landlord refuse to make necessary repairs.
When landlord refuse to enforce lease terms.
If tenant damage the property.
So these are the most common reason for disputing between landlords and tenants.

Whenever disputes arises between landlord and tenant under transfer of property act , generally they approach the courts for solving the disputes . While Indian judiciary is known as one of the oldest judicial system dealing with wide range of cases . However it has been deficient in handling the bulk of the cases . The storage of judges and judicial staff . Another thing people resenting Court system is the delay in diciding cases . And also involved huge amount of cost. So there is a ADR ( alternative disputes resolution) like arbitration it means when a third party solve the disputes . Because of this is easy and cheap . Arbitration is legally recognised by the supreme court.

In the case of ( Himangi Enterprise V kamaljeet Singh 2017) it was held that landlord and tenant disputes governed by the provisions of TPA so it is not arbitrable.

But this virdict overruled by SC in 2021 by Justice N.V Ramana and dicided that arbitral tribunal have the power to dicide disputes under TPA . But rent control laws would not be arbitrable .

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