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TMI Blog2000 (7) TMI 920X X X X Extracts X X X X X X X X Extracts X X X X ..... s stated in the notification w.e.f. 1st April, 1983. The contractor claims that he started paying revised minimum wages to the employees and applying the labour escalation formula, the Board made payments to the contractor for the work done from 1st April, 1983 till December, 1984. The Board, however, stopped making payment of labour escalation from January, 1985. By letter dated 28th April, 1986, Government of Kerala wrote to the Board that the works in question come under Item 31 of the Schedule added to the Schedule by Kerala Government by notification dated 23rd December, 1969 and the work undertaken by the contractor, though may include stone crushing as a part of their labour, but the notification dated 30th March, 1983 does not apply to the work of constructing a dam and hence the contractor's claim for escalation under notification dated 30th March, 1983 is not maintainable. Thus, the Board stopped clearing the bills for enhanced minimum wages claimed by the contractor. It is claimed by the contractor that a settlement entered with the workers regarding payment of enhanced wages as per 1983 notification, stipulated that the increased wages paid will be treated as advances t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 30th March, 1983. The Board does not dispute its liability to reimburse the contractor if in fact the payment of enhanced wages has been made by the contractor to the workmen in terms of notification. The Board, however, claims that the contractor has failed to prove the payment of enhanced wages to the workmen. According to the contractor, he made payment of a sum of Rs.9,93,93,868/- towards the escalated minimum wages to the workmen for the period commencing from 1st January, 1985 to 31st March, 1993 and he is entitled to be reimbursed for the said amount. The contractor is said to have entered into a memorandum dated 4th July, 1994 with the workmen through their union giving effect to the award of the industrial tribunal and the said settlement has also been endorsed by the Labour Officer and it shows payment of aforesaid sum having been made by the contractor. The Board accepted the award but at the same time, constituted a committee to go into the matter of making payment by the contractor in implementation of the award of the tribunal. The Committee gave its report which was filed alongwith the counter affidavit of the Board in the High Court. The report inter alia notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laborating the first submission, learned counsel for the appellant submits that the dispute relating to interpretation of a clause in a contract and implementation of such clause cannot be made subject matter of a writ petition and remedy of the aggrieved person lies in approaching the Civil Court or some other appropriate forum. It was further contended that all contracts entered into by a body whose existence may be governed by the provisions of a statute are not statutory contracts. On the other hand, it was contended for the contractor that the obligation of the Board arises as soon as the wages payable to the workmen get enhanced on account of Government notification revising minimum wages and it does not contemplate any investigation into the question whether enhanced payments were in fact made or not. The contention further is that under the Minimum Wages Act and under the industrial law, the authorities do oversee the payments and make sure that the workmen are not denied such benefits. It was further contended that the Board did not contend in the earlier writ petition before the High Court or even before the industrial tribunal that the payment as per the notification wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntract or its enforceability have to be determined according to the usual principles of the Contract Act. Every act of a statutory body need not necessarily involve an exercise of statutory power. Statutory bodies, like private parties, have power to contract or deal with property. Such activities may not raise any issue of public law. In the present case, it has not been shown how the contract is statutory. The contract between the parties is in the realm of private law. It is not a statutory contract. The disputes relating to interpretation of the terms and conditions of such a contract could not have been agitated in a petition under Article 226 of the Constitution of India. That is a matter for adjudication by a civil court or in arbitration if provided for in the contract. Whether any amount is due and if so, how much and refusal of the appellant to pay it is justified or not, are not the matters which could have been agitated and decided in a writ petition. The contractor should have been relegated to other remedies. Ordinarily, in view of aforesaid conclusions on the first contention, we would have allowed the appeal and directed dismissal of the writ petition (O.P.283 OF 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch increased wages and was willing to provide for revision in the rate structure on the basis of an agreed formula to take into account the increase in the minimum wages statutorily notified. In this view, the contractor suggested formula for revising the rate structure. The formula initially suggested by the contractor in his letters dated 21st May, 1981 and 5th June, 1981 was not accepted by the Board and the Chief Engineer in his letter dated 11th June, 1981 asked the contractor to modify the conditions in such a way that the terms and formula are acceptable to the Board. Thereupon, the contractor submitted the revised formula in his letter dated 15th June, 1981. This was accepted by the Board when it communicated to the contractor by letter dated 1st July, 1981 that the contract has been awarded to the contractor. The formula regarding labour escalation as described in the letter dated 15th June, 1981 was accepted by the Board subject to the stipulation that the minimum wages for ordinary `mazdoor' will not be less than Rs.13/- per day viz. the rate as per PWD Schedule for rates 1980 applicable to the locality. It also provided that the labour escalation will be given only in c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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