Case: FOOD CORPORATION OF INDIA Vs. PRATAP KUNDU

18.01.2000 to 17.01.2002 and it was extended till 13.07.2004. It is also required to be noted that 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 Honble Supreme Court. It is also required to be noted that in Appendix VIII with respect to other items, namely item nos. 1 to 23 and 25, specific rates were mentioned, however, with respect to Item No. 24 – supply of casual labourers, it was blank and with respect to Item No. 24, it was specifically provided that the wages to be paid to the casual labourers shall abide by the decision of the pending SLP. The contractor paid the wages to the casual labourers at the rate of Rs.106.38 per day. The first SLP came to be dismissed by this Court on March 29, 2004. However, still the dispute continued. Contempt proceedings were initiated which ultimately reached this Court by way of Civil Appeal Nos. 9472-9473 of 2003. Civil Appeal Nos. 9472-9473 of 2003 came to be finally disposed of by this Court on 14.01.2010 and it was directed that the FCI shall fix the pay of the casual labourers as also of the deceased workers, who were petitioners in the first or second case filed in the High Court, in Scale-II, as revised from time to time (as on 1.1.1997, the scale was Rs.4320-7330). This Court also directed that all the payments shall be made to the workers and legal representatives of the deceased workers directly without involving any contractor and other agency. Therefore, the dispute with respect to wages came to be finally settled/disposed of by this Court by its order dated 14.01.2010 passed in Civil Appeal Nos. 9472-9473 of 2003. Therefore, the casual labourers were entitled to the wages as per the final order passed by this Court dated 14.01.2010 in Civil Appeal Nos. 9472-9473 of 2003, 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, i.e., Civil Appeal Nos. 9472- 9473 of 2003. 6.1 At this stage, it is also required to be noted that even subsequently the workers filed contempt petition before this Court which came to be dismissed as this Court was of the opinion that order dated 14.01.2010 passed in Civil Appeal Nos. 9472-9473 of 2003 has been complied with. That thereafter the contractor made the claim claiming 471% ASOR with respect to supply of casual labourers at 471% ASOR as per the claim 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 statement with respect to claim made by the contractor and the amount paid to the casual labourers as determined and paid by the FCI is as under: table The aforesaid claim has been rejected by the Chairman of the FCI and according to us the same was rightly rejected by the Chairman 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 in Civil Appeal Nos. 9472-9473/2003. Therefore, as such, the Division Bench of the High Court has rightly observed and held that after this Courts 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. We are in complete agreement with the said finding recorded by the Division Bench. Therefore, it is observed and held that 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 in Civil Appeal Nos. 9472-9473/2003. 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, therefore, the Division Bench of the High Court has referred the matter back to the Chairman of the FCI to consider how the differential rate of casual labourers between Rs. 308.85/- per day and Rs.353.19/- per day between January and March, 2000 and October to December, 2001 respectively and the differential rate for the subsequent period up to July, 2004 has been determined and the Chairman is directed to determine the exact amount of wages that was payable, applying the judgment and order passed by this Court dated 14.01.2010 in Civil Appeal Nos. 9472- 9473/2003. 6.2 So far as the direction issued by the Division Bench of the High Court directing the Chairman to determine the profit earned by the contractor out of his contract is concerned, the same is not sustainable at all. The Division Bench of the High Court has observed that the judgment and order of this Court dated 14.01.2010 has left open other issues to be determined. We do not find anything in the order dated 14.01.2010. On bare reading of the order dated 14.01.2010 there does not appear to be left open other issues to be determined, as observed by the High Court in the impugned judgment and order. Under the circumstances, that part of the direction issued by the Division Bench directing the Chairman to determine the profit earned by the contractor deserves to be quashed and set aside.

Decision (1 = appeal accepted, 0 = rejected): 1

Explanation:
1[ds]It is required to be noted that the original contract period was from 18.01.2000 to 17.01.2002 and it was extended till 13.07.2004. It is also required to be noted that 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 Honble Supreme Court. It is also required to be noted that in Appendix VIII with respect to other items, namely item nos. 1 to 23 and 25, specific rates were mentioned, however, with respect to Item No. 24 – supply of casual labourers, it was blank and with respect to Item No. 24, it was specifically provided that the wages to be paid to the casual labourers shall abide by the decision of the pending SLP. The contractor paid the wages to the casual labourers at the rate of Rs.106.38 per day. The first SLP came to be dismissed by this Court on March 29, 2004. However, still the dispute continued. Contempt proceedings were initiated which ultimately reached this Court by way of Civil Appeal Nos. 9472-9473 of 2003. Civil Appeal Nos. 9472-9473 of 2003 came to be finally disposed of by this Court on 14.01.2010 and it was directed that the FCI shall fix the pay of the casual labourers as also of the deceased workers, who were petitioners in the first or second case filed in the High Court, in Scale-II, as revised from time to time (as on 1.1.1997, the scale was Rs.4320-7330). This Court also directed that all the payments shall be made to the workers and legal representatives of the deceased workers directly without involving any contractor and other agency. Therefore, the dispute with respect to wages came to be finally settled/disposed of by this Court by its order dated 14.01.2010 passed in Civil Appeal Nos. 9472-9473 of 2003. Therefore, the casual labourers were entitled to the wages as per the final order passed by this Court dated 14.01.2010 in Civil Appeal Nos. 9472-9473 of 2003, 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, i.e., Civil Appeal Nos. 9472- 9473 of 20036.1 At this stage, it is also required to be noted that even subsequently the workers filed contempt petition before this Court which came to be dismissed as this Court was of the opinion that order dated 14.01.2010 passed in Civil Appeal Nos. 9472-9473 of 2003 has been complied with. That thereafter the contractor made the claim claiming 471% ASOR with respect to supply of casual labourers at 471% ASOR as per the claim 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 statement with respect to claim made by the contractor and the amount paid to the casual labourers as determined and paid by the FCI is as under:The aforesaid claim has been rejected by the Chairman of the FCI and according to us the same was rightly rejected by the Chairman 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 in Civil Appeal Nos. 9472-9473/2003. Therefore, as such, the Division Bench of the High Court has rightly observed and held that after this Courts 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. We are in complete agreement with the said finding recorded by the Division Bench. Therefore, it is observed and held that 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 in Civil Appeal Nos. 9472-9473/2003. 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, therefore, the Division Bench of the High Court has referred the matter back to the Chairman of the FCI to consider how the differential rate of casual labourers between Rs. 308.85/- per day and Rs.353.19/- per day between January and March, 2000 and October to December, 2001 respectively and the differential rate for the subsequent period up to July, 2004 has been determined and the Chairman is directed to determine the exact amount of wages that was payable, applying the judgment and order passed by this Court dated 14.01.2010 in Civil Appeal Nos. 9472- 9473/20036.2 So far as the direction issued by the Division Bench of the High Court directing the Chairman to determine the profit earned by the contractor out of his contract is concerned, the same is not sustainable at all. The Division Bench of the High Court has observed that the judgment and order of this Court dated 14.01.2010 has left open other issues to be determined. We do not find anything in the order dated 14.01.2010. On bare reading of the order dated 14.01.2010 there does not appear to be left open other issues to be determined, as observed by the High Court in the impugned judgment and order. Under the circumstances, that part of the direction issued by the Division Bench directing the Chairman to determine the profit earned by the contractor deserves to be quashed and set aside.