1
(“
Vidya Drolia”) has made an attempt
to clear the decade-old uncertainty on this issue and has proposed
a four-fold test to determine the question of arbitrability in
India along with an interpretative guide for forums adjudicating
this issue.
This article briefly discusses the position of law prior to the
judgment in
Vidya Drolia and then goes on to discuss the
key findings of the Supreme Court in
Vidya Drolia and the
application of the test and guidance to forums.
Arbitrability under Indian Law: The Pre-Vidya Drolia Era
The Supreme Court s 2011 judgment in
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2 and held that the
tenancy disputes are now arbitrable as the Transfer of Property
Act, 1882 (
TP ACT ) does not
foreclose arbitration, save and except for those tenancy disputes
which are governed by rent control legislations as specific forums
have been given exclusive jurisdiction to decide the special rights
and obligations of the parties.
3 and held
that while deciding an issue of public policy or public interest,
reference to dispute resolution mechanisms cannot be held
foreclosed.
THE JOURNEY SO FAR
Over the years, various conflicting judgments were pronounced by
various High Courts in India on the issue whether disputes arising