JUDGMENT

M. Y. EQBAL, J.

Leave granted.

2. The short question that falls for consideration in this appeal is as to whether the Bombay High Court has correctly decided the jurisdiction of a Court to entertain application under Section 34 of the Arbitration and Conciliation Act, 1996?

3. The facts of the case lie in a narrow compass.

4. The Appellant Company is running a small scale industry at Raichur in the State of Karnataka and is engaged in the business of cotton ginning, pressing while extraction and in marketing the finished products. Whereas Respondent No.2 is running a cotton spinning mill at Latur in the State of Maharashtra. Respondent no.2 purchased 750 bales of cotton from the appellant-company and made part payment to the appellant. The balance amount was not paid which led to a dispute between the parties.

5. It further appears that the appellant filed an application under Sections 3 and 4 of the Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act,1993 (for short ‘IDP Act’) before respondent no.1, the Industrial Facilitation Council (for short ‘IFC’) to arbitrate the dispute between the appellant and respondent no.2. The appellant ther