AIR 2019 SUPREME COURT 3498 ::AIROnline 2019 SC 516 ::(2019) 2 ArbiLR 121 ::(2019) 4 CivLJ 52 ::(2019) 1 All RentCas 660 ::(2019) 2 RecCivR 542 ::(2019) 4 Scale 749 ::AIR 2019 SC (Civil) 2969

Supreme Court Of India

(From: Calcutta)*

Hon'ble Judge(s): Rohinton Fali Nariman, Vineet Saran , JJ

(A) Transfer of Property Act (4 of 1882) , S.111(g)— Arbitration and Conciliation Act (26 of 1996) , S.11— Lease - Arbitration clause - Lease is transfer of interest in property - There is nothing in Transfer of Property Act to show that dispute as to determination of lease arising u/S. 111 cannot be decided by arbitrator. (Para 12) (B) Transfer of Property Act (4 of 1882) , S.111, S.114, S.114A— Arbitration and Conciliation Act (26 of 1996) , S.11(6A)— [as inserted by Amendment Act (3 of 2016)] - Each grounds stated in S. 111, whether r/w. S. 114 and/or 114-A, are grounds which can be raised before arbitrator to decide as to whether lease has or has not been determined. Close reading of S. 114 would show that the rights of landlord and tenant are balanced by the aforesaid provision. This is because where a lease of immoveable property has been determined by forfeiture for non-payment of rent, and at the hearing of the suit, the lessee pays or tenders to the lessor the rent in arrears, together with interest thereon and his full costs within 15 days, the Court in its discretion may relieve the lessee against the forfeiture. This shows two things - one that the landlord's interest is secured not only by the deposit of rent in arrears but also interes....