ORDER

This appeal by special leave arises out of arbitration proceedings. The High Court of Orissa dismissed an appeal filed by the appellant against the order of Subordinate Judge, Bhubaneshwar making an award made by the Arbitrator a rule of the Court. The three main issues with which we are concerned in this appeal are :

"1. Whether the Arbitrator could have granted an award for escalation in favour of the contractor?

2. Whether the Arbitrator could have awarded pendente lite interest in favour of the contractor? and

3. Whether the Arbitrator could have granted interest for the pre-reference period?"

2. It is not disputed that the arbitration agreement contained no escalation clause. In the absence of any escalation clause, an Arbitrator cannot assume any jurisdiction to award any amount towards escalation. That part of the Award which grants escalation charges is clearly not sustainable and suffers from a patent error. The decree, insofar as the award of escalation charges is concerned, cannot, therefore, be sustained.

3. It is conceded by Ms. Mana Chakraborty, learned counsel for the State that the issue relating to the pow