Lease Disputes under TP Act are arbitrable – Section 11
Judgment dated 12.8.2025 of the High Court of Bombay in Arbitration Petition No.16 of 2024 of Satischandra Soman Vs. Caltherm Thermostats India Pvt Ltd
The petitioner had given 999-year lease for monthly rent of Rs.450/- to the respondent in respect of 60 acres of land in Pune district. The Lease Deed contained arbitration agreement.
On 11.8.2023, the petitioner invoked arbitration for payment of Rs.17.08 lakhs with compound interest, damages of Rs.75 lakhs, Rs.5 lakhs legal expenses and return of peaceful possession of the lease lad.
The respondent objected to the same on the ground that the disputes between lessors and lessees are not arbitrable.
In that context, it was HELD that in the facts of the case, prima facie the disputes and differences relate to a bilateral lease deed under the Transport of Property Act. Such disputes are eminently arbitrable pursuant to the ruling in Vidya Drolia case. That apart, the Section 11 Court must confine its examination of issues to the existence of a validly executed arbitration agreement and nothing more.
