VARINDERA CONSTRUCTIONS LTD. Vs. UNION OF INDIA (UOI) THROUGH DIRECTOR GENERAL MARRIED ACCOMMODATION PROJECT

JUDGEMENT

(1.) THE Present petition has been filed under Article 226 of the Constitution of India against the alleged arbitrary action of the respondent (Union of India through Director General, Married Accommodation Project, Kashmir House, Rajaji Marg, New Delhi) in rejecting the claim of the petitioner for payment towards additional expenses of the petitioner on account of the exorbitant hike in minimum wages. And further in rejecting the petitioner's request for reference of the dispute to arbitration.

(2.) THE factual matrix as culled out from the petition is. The petitioner herein (M/s Varindera Constructions Ltd.) is a Public Limited Company and is in the business of civil construction. The parties herein entered into Works Contracts (4 Nos. ) for the PROVISION OF MARRIED ACCOMMODATION AT HISSAR, being Packages II to V. in the aggregate lump sum of Rs. 188,62,50,505/ - (approximately Rs. 189 crore), the labour content whereof is approximately [twenty five percent] (25%). Two letters of acceptance issued by the respondent are dated 01.06.2006 and the remaining 2 letters are dated 02.02.2007.

(3.) IT is contended by learned Counsel for the petitioner that the General Conditions of Contract. have an in -built contradiction of terms in as much as while Article 19 thereof bars any claim of escalation, Article 25 stipulates that if after the last date of submission of tenders, there occurs any change and/or any ordinance is imposed by Central Government, State Government/any Statutory Body and as a consequence of this, if Contractor is required to pay to or claim any adjustment/reimbursement on this account, contractor shall submit his claim along with supporting document to substantiate the claim.