BHANDARI UDYOG LIMITED Vs. INDUSTRIAL FACILITATION COUNCIL

JUDGEMENT

(1.) Rule. Rule made returnable forthwith. With consent of learned counsel for both sides, heard finally.

(2.) An application under section 34 of the Arbitration and Conciliation Act, 1996 (for short, "the Act") filed in the District Court, Latur by present respondent No. 2 was held maintainable being within the territorial jurisdiction of that Court.

(3.) Present petitioner i.e. original Respondent No. 1 is an industry situated at Raichur, District Raichur in the State of Karnataka. It filed application under section 11 of the Act in the High Court of Karnataka at Bangalore, which was decided by the Designate of the Hon'ble Chief Justice of the High Court of Karnataka. It was the case of the petitioner that a dispute existed regarding payment of Rs. 20,25,213.54 paise from the respondent No. 2 i.e. Indira Sahakari Sut Girani Ltd., Latur. In the circumstances, in view of section 6 (1) of the Interest on Delayed Payments To Small Scale And Ancillary Industries Undertakings Act, 1993 (for short, "the IDP Act"), the parties can be referred to the Industrial Facilitation Council for acting as an Arbitrator the present respondent No. 1.