ORDER

1. Ms. Suruchi Aggarwal is discharged from appearing for the respondent. Mr. Rajesh Kumar has filed vakalatnama for the respondent.

2. By our order dated 10-7-1997 while issuing notice in this SLP it was directed to be placed for final disposal at notice stage itself on a non-miscellaneous day. Accordingly SLP was finally heard by us.

3. Learned advocates for the parties were heard at length. During the hearing it transpired that two main questions of law arose for our consideration. Firstly, whether in an application under Section 11 of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as "the Act"), the authority concerned had jurisdiction to consider whether the dispute sought to be referred for arbitration was arbitrable or not; and secondly whether on merits the disputes raised in the present case were covered by the arbitration agreement or not. So far as the first question is concerned it had to be resolved in the light of the statutory scheme of the Act. However if that question was decided in favour of the petitioner by holding that arbitrability of the disputes could be considered in applications under Section 11 of the Act, then the second question w