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2022 Supreme(Ori) 376

IN THE HIGH COURT OF ORISSA AT CUTTACK
B.R. SARANGI, SANJAY KUMAR MISHRA, JJ.
Sanjaya Jain - Petitioner
Versus
State of Odisha and Ors. - Opp. Parties
W.P.(C) No. 14147 of 2013
Decided On : 11-08-2022

Advocates Appeared:
For the Petitioner: M/s. Prabodh Ch. Nayak & D. Mohapatra.
For the Opp. Parties :Mr. P.K. Muduli, Addl. Government Advocate.

Contractor's entitlement to differential enhanced wages as per the Agreement and the Notification dated 06.10.2012, upheld by the Judgment in Mahesh Prasad Mishra v. State of Orissa, 2012 (Supp.-I) OLR 1035, and the apex Court's dismissal of the SLP (C) CC No.11256 of 2012.

Headnote:

Writ Petition - Contractor - Minimum Wages Act, 1948, Clause 31(b) & (e) of F2 Agreement, Notification dated 06.10.2012 - The court held that the Contractor is entitled to get enhanced escalated labour cost as per the Agreement and the Notification dated 06.10.2012. The Judgment in Mahesh Prasad Mishra v. State of Orissa, 2012 (Supp.-I) OLR 1035, upheld by the apex Court, was relied upon to support the claim of the Petitioner for differential enhanced wages.

Fact of the Case:

The Petitioner, a Contractor, claimed differential enhanced minimum wages in terms of the Notification dated 06.10.2012, after executing an Agreement based on the Minimum Wages prevailing on 25.07.2012. The State denied the claim, contending that the Petitioner is bound by the conditions stipulated in the contract itself.

Finding of the Court:

The court found that the Contractor is entitled to the differential wages as per the Agreement and the Notification dated 06.10.2012. The Judgment in Mahesh Prasad Mishra v. State of Orissa, 2012 (Supp.-I) OLR 1035, upheld by the apex Court, was relied upon to support the claim of the Petitioner for differential enhanced wages.

Issues: The main issue was whether the Contractor is entitled to differential enhanced wages as per the Notification dated 06.10.2012, despite executing the Agreement based on the Minimum Wages prevailing on 25.07.2012.

Ratio Decidendi: The court held that the Contractor is entitled to get enhanced escalated labour cost as per the Agreement and the Notification dated 06.10.2012. The Judgment in Mahesh Prasad Mishra v. State of Orissa, 2012 (Supp.-I) OLR 1035, upheld by the apex Court, was relied upon to support the claim of the Petitioner for differential enhanced wages.

Final Decision: The Writ Petition was allowed, and the Opposite Parties were directed to calculate the differential labour cost and pay the same to the Petitioner as expeditiously as possible, preferably within a period of four months from the date of communication of the Judgment.

JUDGMENT :

B.R. Sarangi, J.

The Petitioner, who is a Contractor, has filed this Writ Petition seeking direction to the Opposite Parties to pay the differential increase of wages of labourers, taking into consideration the voluminous work executed by the Petitioner in terms of the Contract, as per the rate of wages fixed for the labourers vide Notification dated 06.10.2012 issued by the Labour & ESI Department in Annexure-4.

2. The factual matrix of the case, in brief, is that Opposite Party No.2 floated a Tender Call Notice, pursuant to which the Petitioner participated and his bid being the lowest, was accepted and he was awarded with the work “Periodical Renewal (P.R.) in Km. 132/080 to Km. 142/620 of NH-26 (erstwhile Km. 176/660 to Km.187/200 of N.H.201) Bid No.CE NH-11/12-13, Job No.Th-026-ORS 2012-13.878”. The Petitioner-Contractor submitted his tender basing upon the estimated cost of work. Initially, Opposite Party No.2 had floated Tender Call Notice fixing the date of submission of the tender to 25.07.2012. But, subsequently a Corrigendum was issued fixing 12.11.2012 as the date of submission of the tender. In pursuance thereof, the Petitioner submitted his bid basing upon the cost estimated by the Department and taking into consideration the rate of wages of labourers as prevailing on or before 25.07.2012. The concerned Department had estimated the cost of the work basing upon the rate of wages of labourers, as fixed by the Government of Odisha, prior to 25.07.2012. The rate quoted by the Petitioner was accepted and thereafter, he was called upon to execute the Agreement with Opposite Party No.3 after necessary compliance as per the Tender Call Notice. After necessary compliance, Petitioner executed F2 Agreement No.45, F2(P1) of 2012-13 with Opposite Party No.3 on 04.01.2013 for execution of the work, as mentioned above.

2.1 Pending execution of the work, the State of Odisha, vide Notification dated 06.10.2012, enhanced wages of skilled and unskilled labourers, which was published in Odisha official Gazette on 09.10.2012. Under Clause-3 of the Explanation to the said Notification, it was specifically mentioned that the minimum rates of wages are applicable to employees employed by the Contractors also. Therefore, the enhanced rate, which was fixed by the Government, is also applicable to the Petitioner, as he was continuing with the Agreement executed on 04.01.2013, according to which the date of commencement of the work was 04.01.2013 and the date of completion of the work was 03.06.2013. Therefore, the Notification issued on 06.10.2012 with regard to enhancement of wages of skilled and unskilled labourer, which was published in the Official Gazette on 09.10.2012, is applicable to the Petitioner. Opposite Party No.3, being the executing Agency of the work, paid the running bills of the Petitioner from time to time, as per the rate quoted by him in the tender. When the Petitioner claimed the escalation price of the wages, as per the Notification dated 06.10.2012 issued by the Government, the same was denied. As a consequence thereof, the Petitioner approached this Court by filing this Writ Petition claiming differential enhanced minimum wages in terms of the Notification dated 06.10.2012.

3. Mr. P.C. Nayak, learned Counsel appearing for the Petitioner, vehemently contended that since the Agreement was executed after enhancement of the wages, pursuant to the Notification dated 06.10.2012, and the Petitioner, while submitting the tender, had quoted the price as on 25.07.2012, he is entitled to get differential enhanced wages in terms of the Notification issued and denial of such benefit to the Petitioner is arbitrary, unreasonable and contrary to the provisions of law. To substantiate his contentions, he has relied upon the judgment of this Court in Mahesh Prasad Mishra v. State of Orissa, 2012 (Supp.-I) OLR 1035, which has been upheld by the apex Court on 01.10.2012 in dismissing SLP (C)…CC No.11256 of 2012 preferred by the

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