awarding interest on the net amount of the final bill of Rs.4,83,179/-. But, he was right in not awarding interest on the component of cash security of Rs.80,669/-. As quoted earlier, it is seen that the Clause prohibits awarding of interest on the earnest money and security deposit or amounts payable under the contract, but as per Section 34 of the Code of Civil Procedure, 1908, the court has jurisdiction to award interest pendente lite. So, the learned District Judge erred in modifying the award and quashing the order of payment of interest, rather the Arbitration Tribunal has to award interest from the date it entered into reference as per the provisions mentioned above. 7. In that view of the matter, this Court finds that the matter should be re-heard by the learned District Judge, so that he can calculate the amount of interest from the date of beginning of the arbitration proceeding till its end and future interest. It is settled principles of law that any interest prior to the initiation of litigation is bound by the contract. However, as per the Section 34 of the Code of Civil Procedure, 1908, the court or the Tribunal has the jurisdiction to award interest. Hence, the matter is remanded back to the learned District Judge, Khurda at Bhubaneswar for re-adjudication. The learned District Judge shall do well to dispose of the arbitration appeal again and pass appropriate orders thereon.
