Judgment

ALAGIRISWAMI, J. - The question of bonus for 16,000 workmen for the years 1958-59 and 1959-60 is still being fought out on preliminary points and this is the second time the matter has come to this Court The earlier decision is reported in 1964 (7) SCR 596 (Hochtief Gammon v. Industrial Tribunal, Bhubaneshwar, Orissa).

2. In August 1957 the Hindustan Steel Ltd., the 4th respondent in the appeal, hereinafter called the company, and the appellant, a partnership of a West German Company and an Indian Company, hereinafter called the contractor, entered into a contract for execution of the foundation and civil engineering work of the Hot and Cold Rolling Mills at Rourkela, including the purification and other civil engineering work connected with the water supply to the Rolling Mills. The contract was a cost contract with a target sum plus fixed overheads and fee, that is, the company was to pay to the contractor all costs of construction and in addition pay fixed overhead for the head office general expenses of the contractor plus a fixed fee. The target sum for the work was Rs. 6,62,94,000. The overheads were D.M. 28,00,000/ plus Rs. 21,20,000/- and the fee of Rs. 62,00,000/-.