ORDER 1. A reference was made by this Court in a dispute arising between the parties for final decision to the arbitrator, a retired Judge of this Court who made his award on 13-6-2001 and in the course of the award referred to Section 24 of the U.P. Civil Laws (Reforms and Amendment) Act, 1976 by which Para 7-A of the First Schedule to the Arbitration Act, 1940 was amended and stated as follows: ' "From the perusal of this paragraph it is clear that in the State of V.P. a the arbitrator is empowered to award interest from the date the cause of action accrued till the payment is made. But so far as rate of interest prior to the date of reference and pendente lite is concerned, the decision of the Division Bench that it cannot exceed 6% requires examination by the Apex Court while passing the decree. The expression, with further interest not exceeding 6% per annum appears to be confined to the t period, from the date of award to the date of payment and not to interest pendente lite and prior to the commencement of arbitration proceedings. However, since the Division Bench has interpreted the provision it would be just and proper to accept and follow it in these proceedings." 2. It is clear from the statement made in the course of this award that though the arbitrator adopted the view expressed by the Division Bench of C the High Court doubting its correctness, he left the matter to be examined by this Court. It is on this aspect of the matter that the appellant/claimant seeks modification of the award. 3. We have perused the judgment upon which reliance has been placed by the arbitrator and in the course of the judgment after setting out Para 7 -A it is stated as follows: "In view of this amended provision the arbitrator had no jurisdiction to award interest exceeding 6% for the period prior to date of making reference or pendente lite." But the view stated by the arbitrator that this expression "with further interest not exceeding 6% per annum" appears to be confined to the period from the I date of the award to the date of payment and not interest pendente lite and prior to the commencement of arbitration proceedings is correct and therefore the award needs modification. 4. 4. Therefore, that part of the award by which the learned arbitrator confined interest as indicated in the course of the Division Bench ruling of the High Court is set aside and the matter is remitted to the arbitrator under Section 16 of the Arbitration Act, 1940 for consideration and disposal. In other respects, the award made by the arbitrator shall stand undisturbed. The arbitrator shall make an award within four months from receipt of the original record and a copy of this order. . 5. A contention was raised as to modification of costs awarded. Award of costs being discretionary and nothing is shown as palpably incorrect to call for our interference. We have gone through the objections raised on behalf of the respondents and we find none of them falling within the scope of Section 31 of the Arbitration Act, 1940 and therefore, we reject all those contentions. 6. IA No. 1 is disposed of in the aforesaid terms.