(1) THIS appeal by special leave puts in issue an order of the High Court of Orissa, dated 16.1.1981. By the impugned order, High Court dismissed an appeal filed by the appellant in limine against the order of the Subordinate Judge, Sambalpur, dated 6.10.1980, making an Award of the Arbitrator a Rule of the Court after over-ruling the objections raised by the appellant herein. (2) ON certain disputes having arisen between the parties, the matter was referred to the Arbitrator on 2.7.1979. The Arbitrator made his Award on 21 st June, 1980 in favour of the predecessor-in-interest of the respondent, though the claim amount was reduced. (3) LEARNED Counsel for the appellant has, in this appeal, questioned only two items of the Award, namely, (1) enhancement of the cost of labour and material for which the respondent has been awarded a sum of Rs. 1,77,200/- and (2) the direction to pay interest for the period 01.03.1976 till date of the Award @ 12% P.A. (being the pre-reference period). (4) BOTH the issues are no longer resintegra. Insofar as the Award of claim of escalation is concerned, it stands settled by this Court in Secretary, Irrigation Department, Government of Orissa & Ors. v. G.C. Roy [JT 1991 (6) SC 349] wherein it has been held that where arbitration agreement contains no escalation clause, the Arbitrator does not have any jurisdiction to Award any amount towards escalation. In the instant case, we find that there is no escalation clause in the arbitration agreement and a specific objection was raised by the appellant before the Arbitrator in that behalf. That part of the Award, therefore, which grants escalation charges is not sustainable, as it suffers from a patent error. The decree insofar as the Award of escalation charges is concerned, therefore, cannot be sustained and is hereby set aside. (5) INSOFAR as the Award of interest for the pre-reference period is concerned, a Constitution Bench of this Court in Executive Engineer, Dhenkanal Minor Irrigation Division Orissa etc. v. N.C. Budhiraj (Dead) by LRs. [JT 2001 (1) SC 486], speaking through the majority, has held that the Arbitrator has jurisdiction to Award interest on the sums found due and payable for pre-reference period also, in the absence of any specific stipulation or prohibition in the contract to claim or grant any such interest. v. N.C. Budhiraj (Dead) by LRs. [JT 2001 (1) SC 486], speaking through the majority, has held that the Arbitrator has jurisdiction to Award interest on the sums found due and payable for pre-reference period also, in the absence of any specific stipulation or prohibition in the contract to claim or grant any such interest. In this case it is not disputed that there is no such prohibition, either specific or implied in the contract or agreement between the parties. Consequently, the Award insofar as it allows interest for the pre-reference period is upheld and the appeal against that part of the Award fails. (6) AS a result, the appeal is disposed of in above terms. The impugned judgment and decree shall stand modified accordingly. No costs.