viction Matters Under Special Tenancy Laws Exempt from Arbitration, Rent-Related Disputes Can Proceed
In a significant ruling on December 18, 2025, the Kerala High Court, presided over by Justice P. Krishna Kumar, set aside an order by the I Additional Munsiff Court, Ernakulam, which had referred a tenancy dispute to arbitration. The case involved a petitioner, A.K. Sukumaran, who sought to restrain Bharath Sanchar Nigam Ltd (BSNL) from forcibly evicting him from leased quarters.
The dispute arose when BSNL attempted to increase the rent, leading to a conflict over eviction and rent payments. The initial court decision allowed the matter to proceed to arbitration under Section 8 of the Arbitration and Conciliation Act, 1996. However, the High Court emphasized that disputes involving forceful eviction under special tenancy laws are non-arbitrable and must be handled by civil courts, which hold the jurisdiction to address such matters.
The petitioner argued that eviction concerns could not be arbitrated, referencing the Supreme Court's judgment in Booz Allen and Hamilton INC v. SBI Home Finance Ltd., which delineates the types of disputes suitable for arbitration. The High Court upheld this view, stating that while rent-related issues can be arbitrated, eviction matters must remain within the civil courts' purview.
The Court concluded that the lower court's order was unsustainable, as it failed to recognize the non-arbitrable nature of eviction under the tenancy agreement. The case was remanded for fresh consideration, with directives for the parties to appear before the trial court on January 20, 2026.
Bottom Line:
Arbitration - Dispute involving eviction under tenancy laws governed by special statutes providing statutory protection to tenants cannot be referred to arbitration. However, disputes related to rent and other matters arising from agreements between parties can be referred to arbitration.
Statutory provision(s): Arbitration and Conciliation Act, 1996 Section 8
A.K.Sukumaran v. Bharath Sanchar Nigam Ltd, (Kerala) : Law Finder Doc Id # 2823781
