9911796707
TMI Blog2018 (5) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... t question is same in these two appeals, both would be disposed off by this common judgment. 3) Brief facts:- (a) The appellant herein is the Union of India and the respondent herein is the Contractor. On 30.10.2006, the appellant floated two tenders for the construction of the residential accommodations at Hissar. Pursuant to that, the appellant received tenders of various companies. (b) Being the lowest quotation of the respondent- Contractor, its tender was accepted by the appellant. The lump sum amount of these two contracts were Rs. 39,09,80,362.61 and Rs. 35,21,99,854.30 respectively. Consequently, the appellant and the respondent-Contractor entered into formal contract and laid down terms and conditions of the contract by which i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... judgment and order dated 28.05.2012. (g) As a result, the appellant has filed these two appeals by way of special leave before this Court. 4) We have given our thoughtful consideration to the submissions of learned senior counsel for the parties and perused the material on record placed before us. Point(s) for consideration:- 5) The present case is confined only to the extent as to whether the Award of the arbitrator and the findings of the High Court are contrary to the express provision of Clause 19, according to which no escalation is permissible to the contractor for, inter alia, increase in wages of labour due to statutory hike, which the contractor may have to incur during the execution of the work on any account? Rival contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d single Judge as well as the Division Bench of the High Court is well-reasoned and based on the cannon of laws which does not call for interference by this Court. Therefore, these appeals being devoid of merits and deserve to be dismissed. Discussion:- 8) The primary object of the arbitration is to reach a final disposition in a speedy, effective, inexpensive and expeditious manner. In order to regulate the law regarding arbitration, legislature came up with legislation which is known as Arbitration and Conciliation Act, 1996. In order to make arbitration process more effective, legislature restricted the role of courts in case where matter is subject to the arbitration. Section 5 of the Act specifically restricted the interference of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suggests that even any escalation takes place due to the action of the government would also not be reimbursed. 10) At this juncture, we would also like to mention that Clause 6.3 of special conditions, particularly, deals with the present issue. For the sake of convenience, it is reproduced herein below: "Minimum Wages Payable: 6.1. Refer condition 51 of DG MAP general conditions of contracts. The Contractor shall not pay wages lower than minimum wages of labour as fixed by the Govt of India/State Govt/Union Territory whichever is higher. 6.2 The fair wage referred to in condition 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pensing the contractor the 37.46% increase in minimum wages. The reasoning given by the learned arbitrator is that the contractor could have envisaged that there would be some increase in wages during the period of contract. 7. The interpretation by the learned arbitrator, if at all is faulty, is to the detriment of the contractor, for the reason Clause 25, which commences with the expression? However? is required to be read as an exception to Clause 19 and, if so read, the entire increase in minimum wages which was result of a government notification was required to 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
