NATRAJ STUDIOS (P) LTD. versus NAVRANG STUDIOS & ANR.

NATRAJ STUDIOS (P) LTD. versus NAVRANG STUDIOS & ANR.

Disputes regarding possession and status as tenant under a 'leave and licence' agreement involving premises are within the exclusive jurisdiction of the Court of Small Causes under section 28 of the Bombay Rent Act, and cannot be referred to arbitration. Any agreement to arbitrate such disputes is inoperative and contrary to public policy.

Parties
Appellant: Natraj Studios (P) Ltd.; First Respondent: Navrang Studios; Second Respondent: Second Respondent (unnamed arbitrator)
Jurisdiction
India
Judgment Date
07 January 1981
Procedural Posture
Civil Appeal / Final Decision on Appeal by Supreme Court
Outcome
Appeal allowed
Legal Topics
Exclusive Jurisdiction Under Rent Control Act, Interpretation of Leave and Licence Agreements, Public Policy in Arbitration
Tenancy Law Arbitration Law Exclusive Jurisdiction Under Rent Control Act Interpretation of Leave and Licence Agreements Public Policy in Arbitration

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Parties

Natraj Studios (P) Ltd.

Appellant

Navrang Studios

First Respondent

Second Respondent (unnamed arbitrator)

Second Respondent

Procedural Posture

Civil Appeal / Final Decision on Appeal by Supreme Court

Legal Issues

  1. 1 Whether an arbitrator has jurisdiction to determine disputes relating to possession and tenancy under the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947
  2. 2 Whether parties can contract out of the exclusive jurisdiction of the Court of Small Causes conferred by section 28 of the 1947 Act by agreeing to arbitration

Ratio Decidendi

Disputes regarding possession and status as tenant under a 'leave and licence' agreement involving premises are within the exclusive jurisdiction of the Court of Small Causes under section 28 of the Bombay Rent Act, and cannot be referred to arbitration. Any agreement to arbitrate such disputes is inoperative and contrary to public policy.

Court Disposition

Appeal allowed

Orders

  • The arbitration clause in the agreement dated March 28, 1970 is declared inoperative.
  • The application for reference to Arbitration is dismissed.