FOOD CORPORATION OF INDIA vs M/S. A.M. AHMED & CO.

The Supreme Court upheld the High Court's decision affirming the arbitration award in favor of the respondent, stating that the dispute regarding escalation of rates was arbitrable despite the absence of an escalation clause in the contract. The Court emphasized that the arbitration process was validly initiated and that the arbitrator had the authority to award interest under Section 31(7)(a) of the Arbitration and Conciliation Act, 1996. The appeal by the Food Corporation of India was dismissed, confirming the award of Rs. 57,10,517 and Rs. 22,84,207 with interest as decreed by the High Court.