FOOD CORPORATION OF INDIA versus PRATAP KUNDU

Citation: [2019] 14 S.C.R. 1103 · Decided: 29-11-2019 · Supreme Court of India · Bench: ASHOK BHUSHAN · Disposal: Disposed off

Judgment (excerpt)

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1103
FOOD CORPORATION OF INDIA
v.
   PRATAP KUNDU
(Civil Appeal No.9127 OF 2019)
  NOVEMBER 29, 2019
[ASHOK BHUSHAN AND M.R. SHAH, JJ.]
Contract:
Tender by appellant-Corporation for appointment of
Handling and Transport contractor – As  per the tender relevant
rate of wages was to be as per the decision of pending case before
Supreme Court – Corporation accepted the tender of the contractor
at the negotiated rate of 471% ASOR (above the schedule rates) –
On completion of contract, contractor claimed ASOR of 471% on
the amount paid to the contract casual labourers – Demand rejected
by the Corporation – Writ petition by Contractor seeking inter alia,
additional amount for payment of contract casual labourers –
Supreme Court, in the meantime, in the pending case directed the
Corporation to make payment of wages to the workmen in Scale II,
by its judgment dated 14.01.2010 – Single Judge of High Court
allowed the writ petition of the Contractor and directed the
Corporation to make payment – In appeal, Division Bench of High
Court held that the contractor was not entitled to the wages to be
paid to the casual labourers on 471% ASOR basis and the wages
were to be paid at the rate specified in the order dated 14.1.2010
passed by Supreme Court – However, High Court finding that there
was no clarity as to how the Corporation had applied the judgment
dated 14.1.2010 to calculate the wages, referred the matter back to
the Corporation to determine exact amount of wages – High Court
also directed the Corporation to determine the profit earned by the
contractor – Appeal to Supreme Court by the Contractor as well as
the Corporation – Held: Division Bench of the High Court rightly
held that the contractor was not entitled to the wages to be paid to
the casual labourers on 471% ASOR basis and that the wages to be
paid to the labourers was to be at the rate specified in the order
dated 14.1.2010 – However, the direction of the Division Bench to
 [2019] 14 S.C.R. 1103
 1103
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SUPREME COURT REPORTS
[2019] 14 S.C.R.
determine the profit earned by the contractor is quashed – Remand
of the matter to the Corporation shall be restricted to the
determination of wages as per the order dated 14.01.2010.
Partly allowing the appeals of the Corporation and
dismissing that of the Contractor, the Court
HELD: 1. At the time when the contract between the FCI
and the contractor was entered into, there was already a dispute
pending with respect to the rate of wages to be paid to the casual
labourers.  Therefore, so far as Item No.24 for supply of casual
labourers is concerned, it was provided that “relevant rate of
wages is to be paid and such rate shall abide by the decision of
pending SLP as filed by the FCI in the Hon’ble Supreme Court”.
The dispute with respect to wages came to be finally settled/
disposed of by this Court by its order dated 14.01.2010. Therefore,
the casual labourers were entitled to the wages as per the final
order passed by this Court dated 14.01.2010,  and as per the
terms and conditions of the contract, more particularly with
respect to Item No. 24, the wages were required to be paid as
per the determination in the pending SLP. [Para 6] [1112-E-G]
2. With respect to supply of casual labourers at 471% ASOR,
the contractor claimed between Rs.607.43 to Rs.1225.19 per day.
The FCI determined and paid the wages as per the direction
issued by this Court in the order dated 14.01.2010 ranging
between Rs. 308.85 to 391.35 per day. The Chairman of the FCI
rightly rejected the claim of the contractor, as the wages to the
casual labourers were required to be determined and paid as per
the order passed by this Court dated 14.01.2010.  Therefore, as
such, the Division Bench of the High Court has rightly observed
and held that after this Court’s judgment and order dated
14.01.2010, the rate of wages payable to the labourers under the
subject contract would be according to the rate specified in that
judgment and not on 471% ASOR basis. Therefore, the contractor
shall not be entitled to the wages to be paid to the casual labourers
on 471% ASOR basis and the wages to be paid to the labourers
would be at the rate specified in the order dated 14.01.2010.
[Para 6.1] [1113-E; 1115-A-C]
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3. However, the Division Bench of the High Court was of
the opinion that there is no clarity how judgment and order dated
14.01.2010 has been applied by the FCI to calculate the wages of
the casual labourers, ther

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