Arbitration Act, 1940 - Pre-reference, pendente lite interestand future interest – Power of arbitrator to award – On facts,disputes between parties referred to arbitration with regard to pricefor supply of goods – Fixation of price by arbitrator and award ofpre-reference, pendente lite and future interest all at the rate of 18%per annum – Reduction of the interest to 10% per annum by theCivil Judge – High Court upheld the same – On appeal, held: Underthe Arbitration Act, an arbitrator has power to grant pre-referenceinterest under the Interest Act, as well as pendente lite and futureinterest – However, he is constricted only by the fact that anagreement between the parties may contain an express bar to theaward of pre-reference and/or pendente lite interest – In the instantcase, clause 16 of the General Conditions of Contract clearly barspayment of interest for any delay – There is nothing in this clausewhich refers even obliquely to the Arbitrator’s power to grantinterest – There was no delay on account of the higher price as itbecame payable only on and from the date of the award – Even ifclause 16 were to have application, both pre-reference and pendentelite interest are not barred – Only reason given for reducing interestfrom 18% to 10% being that ONGC is a Public Sector Undertaking,would not suffice to set aside what was within the Arbitrator’sdiscretion – Further, there is no finding that arbitrator exercisedthe discretion perversely – Thus, the grant of interest at the rate of18% as pre-reference, pendente lite and future interest upheld –Interest Act, 1978.