TMI Blog2018 (5) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... ore accepting the contract, any departure cannot be allowed - the respondent cannot claim reimbursement of excess of minimum wages on account of hike due to the Notification of the Government of Haryana. If any departure would be allowed from the terms and conditions of the contract, then it would destroy the basic purpose of the contract provided such conditions shall not be arbitrary. It is a settled law that the process of interpretation is based on the objective view of a reasonable person, given the context in which the contracting parties made their agreement. On a perusal of the said two paragraphs of the impugned judgment, we fail to understand that on what parameters the High Court has interpreted Clause 19 in light of Clause 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed into formal contract and laid down terms and conditions of the contract by which it was decided that both would be bound and also added the clause of arbitration in case of dispute. (c) As per the terms of the contract, respondent started the work of construction as per the schedule on 20.03.2007 and finally completed the work within the stipulated extended time period of completion. At this juncture, respondent submitted the final bill along with some additional claims. The claim of additional amount was rejected by the appellant. As a result, the respondent invoked the arbitration clause and the dispute was referred to learned Arbitrator Shri Sunil Chopra, Chief Engineer (Contract) as provided under the Contract. (d) Learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hike, which the contractor may have to incur during the execution of the work on any account? Rival contentions:- 6) At the outset, learned senior counsel for the appellant-Union of India contended that the relationship of the appellant and respondent is governed by the terms and conditions of the contract and as per Clause 19 of the special conditions, it is clearly mentioned that No escalation, reimbursement whatsoever shall be made to the contractor for increase in, inter-alia, wages of the labor during the execution of the contract . Hence, the Notification issued by the State of Haryana which increased the minimum wages of the labour during the subsistence of the contract does not vest any right to the contractor to claim a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of courts in case where matter is subject to the arbitration. Section 5 of the Act specifically restricted the interference of the courts to some extent. In other words, it is only in exceptional circumstances, as provided by this Act, the court is entitled to intervene in the dispute which is subject matter of arbitration. Such intervention may be before, at or after the arbitration proceeding, as the case may be. In short, court shall not intervene with the subject matter of arbitration unless injustice is caused to either of the parties. 9) It is well-settled cannon of law that parties are free to decide their own terms and conditions in case of a contract. In the instant case, Clause 19 of the special conditions deal with issue of ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 51 of DG MAP general conditions of contracts will be deemed to be the same as the minimum wages payable as referred to above. 6.3. The contractor shall have no claim whatsoever, if on account of local factor and /or regulations he is required to pay the wages in excess of minimum wages as described above during the execution of work. (Emphasis supplies by us) On a plain reading of Clause 6.3 read with Clause 19, it is evident that it was particularly made clear that no escalation would be reimbursed even in the case of Regulation. Hence, in the presence of such clauses, which respondent voluntarily agreed before accepting the contract, any departure cannot be allowed. In other words, now the respondent cannot claim reimb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be recompensed. 12) It is a settled law that the process of interpretation is based on the objective view of a reasonable person, given the context in which the contracting parties made their agreement. On a perusal of the said two paragraphs of the impugned judgment, we fail to understand that on what parameters the High Court has interpreted Clause 19 in light of Clause 25 of the Contract. Both the clauses stand on different footing. Clause 19 deals, inter alia , with the matter of wages whereas Clause 25 deals with the matter of Octroi Sales Tax and other Duties. Such interpretation adopted by the High Court is against the cardinal principle of law which says that the terms of the contract shall be construed by the courts after hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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