Summarize the following court judgment. Special Leave Petition (Civil) No. 8094 of 1988. From the Judgment and Order dated 16.3.88 of the Andhra Pradesh High Court in (A.A.O.) No. 1152/86 & C.R.P. No. 2728 of 1986. C. Sitaramiah and G. Prabhakar for the Petitioners. R.F. Nariman	 K. Prabhakar and R.N. Kishwani for the Respondent. The Judgment of the Court was delivered by SABYASACHI MUKHARJI	 CJ. The respondent R.V. Rayanim was	 at all material times	 a Class I contractor who had entered into an agreement with the Government of Andhra Pradesh for formation of earth dam in gorge portion from chainage 3360 to 3380 M of Raiwada Reservoir Project near Devarapalli village	 Chodavaram Taluk	 Distt. Visakhapatnam	 Andhra Pradesh. Disputes and differences arose between the parties in respect of the aforesaid agreement. A reference was made to the arbitrator as per the arbitrator clause in the agreement between the parties. The respondent made eleven claims claiming various amounts	 particulars whereof have been set out by the arbitrator as follows. 56 "I.Payment for forming cross (Rs. in lakhs) 15.89 bund and refund of the (subsequently reduced amount recovered. to Rs.14.89 lakhs) II.Refund of Seigniorage 2.071 (withdrawn) Charges III.Escalation and damages 14.00 IV.Extra load for sand 1.075 (subsequently reduced to Rs.0.575 lakhs). V.Payment for excavation 1.030 under water for probing diaphram wall VI. Compensation for loss 1.500 suffered due to partial prevention by the department. Compensation for loss 2.015 suffered due to non payment for the work done. VIII.Refund of excess hire 0.730 charges recovered. Overheads 0	960 X. Costs O. 100 XI. (a) Interest on II and VIII at 24% from the date of recovery. (b) On Rs.8.30 lakhs at 24% p.a. from 30.11.81 to 12.5. (c) Interest at 24% on the award amount except II and VIII from the date of petition. " The arbitrator gave a non speaking award dated 27th July	 1985 in favour of the respondent	 amounting to Rs.19.39 lakhs	 wherein he stated as follows: "Claim II has been withdrawn by the petitioner himself on the ground it was subsequently refunded by the respondents. On the balance claims (I and III to X) according to my assessment	 I award a consolidated amount of Rs.19.39 lakhs to the extent of the claims judged admissible. The respond ents shall pay Rs. Nineteen lakhs and thirty nine thousand to the petitioner. " It is	 therefore	 apparent the claim No. II as mentioned above	 57 had been withdrawn. On the balance claims I and III the arbitrator had awarded a consolidated amount of Rs.19.39 lakhs 'to the extent of the claims judged admissible '. The respondent filed a proceeding before the Court to make the award rule of the Court. The petitioner preferred an appli cation for setting aside the award. By a common judgment dated 21st April	 1985	 the Second Additional Judge	 City Civil Court	 Hyderabad	 dismissed the petition of the peti tioner for setting aside the award and allowed the judgment in terms of the award. The petitioner preferred an appeal and a civil review petition before the High Court of Hydera bad. By a judgment dated 16th March	 1988 the division bench of the High Court dismissed the appeal and the revision of the petitioner. It held that the non speaking award of the arbitrator was not liable to be set aside by the Court. The petitioner has preferred this special leave petition challenging the said decision of the High Court. The main contention which was sought to be urged on this case was that the award was a nonspeaking award and	 as such	 was bad. On this ground	 on or about 9th December	 1988 this Court directed that the matter should be taken up along with civil appeal No. 5645 and 5645A of 1986 pending before a larger bench. At that time	 the question was pending consid eration by the Constitution Bench of this Court. This Court further directed on 9th December	 1988 that the entire amount of award	 if not deposited in the trial court	 should be deposited in the trial court within two months from that date	 and upon the deposit being made the respondent will be at liberty to withdraw 50% of the amount which has not been withdrawn on furnishing security to the satisfaction of the trial court. It was further recorded that 50% had already been withdrawn. As mentioned hereinbefore	 the main contention sought to be urged was that the award being a non speaking award	 was bad in law. In view of the decision of this Court in Raipur Development Authority etc. vs M/s Chokhamal Contractors etc. 	 Jmt. Today 2 SC 285	 this contention is no longer sustainable. It was then contended that the award has pur ported to grant damages on the basis of escalation of cost and prices; and such escalation was not a matter within the doman of the bargain between the parties and having taken that factor into consideration the award was bad. We have set out the relevant portion of the award. From reading the award	 as set out hereinbefore	 it is clear that the arbi trator has considered the claim made on the basis of 'esca lation and damages ' but he has awarded a total sum of Rs.19.39 lakhs insofar as he finds admissible in respect of the claims which the arbitrator has adjudged. It speaks no further. In such a situation it is 58 not possible to contend that there was any exercise of jurisdiction by the arbitrator beyond his competence. It is well settled that in matter of challenging the award	 there are often two distinct and different grounds. One is an error apparent on the face of the record and the other is that the arbitrator has exceeded his jurisdiction. In the latter 's case the Court can look into the arbitration agree ment but under the former it cannot	 unless the agreement was incorporated or recited in the award. An award may be remitted or set aside on the ground that the arbitrator	 in making it	 had exceeded his jurisdiction and evidence of matters not appearing on the face of it	 will be admitted in order to establish whether the jurisdiction had been exceed ed or not	 because the nature of the dispute is something which has to be determined outside the award whatever might be said about it in the award or by the arbitrator. See the observations of this Court in M/s Sudarshan Trading Co. vs Government of Kerala & Anr.	 ; Only in a speaking award the court can look into the reasoning of the award. It is not open to the court to probe the mental process of the arbitrator and speculate	 where no reasons are given by the arbitrator; as to what impelled the arbitrator to arrive at his conclusion. In the instant case the arbitrator has not awarded any amount on account of escalation of costs and expenses. At last the arbitrator has not expressly awarded any amount on the ground of such escalation and if so	 what amount	 is not apparent on the face of the record. In these circumstances	 in our opinion	 on the basis of well settled principles of law such an award	 especially in view of the fact that excluding item No. III the remaining items would also be well over Rs.19.33 lakhs	 it is not discernible on the face of the record that arbitrator has exceeded his jurisdiction in awarding damages on account of escalation of charges and expenses which were beyond the arbitration ambit. The fact that the arbitrator has considered the claim made by the respondent on account of escalation	 does not make per se the award to be bad. Mr. C. Sitaramiah	 learned counsel appearing for the appellant contended that the fact that the arbitrator has taken into consideration the question of escalation would make the award bad because it is not discernible whether he has awarded any amount on account of escalation. We are of the opinion that this argument is not open. In case of an error apparent on the face of the record	 it has to be established that an item or an amount which the arbitrator had no jurisdiction to 59 take into consideration	 has been awarded or granted. That is not apparent on the face of the award in this case. All that the award states is that he has considered the claim on the basis of escalation. Such a consideration does not make the award on the face of it	 bad on the ground of error apparent on the face of the record. Indeed	 the arbitrator	 when a claim is made	 has to take that into consideration either for acceptance or rejection of the claim made. The award states that he has taken the claim made	 into consid eration. The award does not state that he has awarded any amount on that account. There is neither any error apparent on the face of the record	 nor any material to satisfy that the arbitrator has exceeded his jurisdiction in awarding the amount as he did. In that view of the matter the special leave petition has no merit made must	 therefore	 fail	 and is accordingly dismissed. The petitioners were allowed to withdraw the awarded sum on furnishing security but in view of the deci sion now rendered	 they will be entitled to take back the security. We order accordingly. The application is dismissed with aforesaid directions. R.S.S. Petition dismissed.

The respondent contractor had entered into an agreement with the petitioner for formation of an earth dam. Disputes and difference arose between the parties. A reference was made to the arbitrator wherein the respondent made eleven claims out of which one claim was later withdrawn. The arbitrator gave a non speaking award in favour of the re spondent amounting to a consolidated sum of Rs.19.39 lakhs. The respondent flied a proceeding before the Court to make the award rule of the Court. The petitioner preferred an application for setting aside the award which was dis missed. The High Court dismissed the appeal and the revision of the petitioner. Before this Court it was contended inter alia that the award purported to grant damages on the basis of escalation of cost and prices	 and such escalation was not a matter within the domain of the bargain between the parties. It was also contended that the fact that the arbitrator had taken into consideration the question of escalation would make the award bad because it was not discernible whether he had awarded any amount on account of excalation. Dismissing the special leave petition	 this Court	 HELD: (1) In matters of challenging an award	 there are often two distinct and different grounds. One is an error apparent on the face of the record and the other is that the arbitrator has exceeded his jurisdiction. In the latter case the Court can look into the arbitration agreement but under the former It cannot	 unless the agreement was incorporated or recited In the award. [58A B] M/s Sudarshan Trading Co. vs Government of Kerala & Anr.	 ; 	 referred to. 11 55 (2) Only in a speaking award the court can look into the reasoning of the award. It is not open to the court to probe the mental process of the arbitrator and speculate	 where no reasons are given by the arbitrator	 as to what impelled the arbitrator to arrive at his conclusion. [58D] (3) It is not discernible on the face of the record that the arbitrator has exceeded his jurisdiction in awarding damages on account of escalation. All that the award states is that he has considered the claim on the basis of escala tion. Such a consideration does not make the award	 on the race of it	 bad on the ground of error apparent on the face of the record. ' [58G H; 59A B] (4) The Arbitrator does not state that he has awarded any amount on that account. There is neither any error apparent on the face of the record	 nor any material to satisfy that the arbitrator has exceeded his jurisdiction in awarding the amount as he did. [59B C]