M.V,.VISWANATHAN KERALA WATER AUTHORITY Vs. M.V,.VISWANATHAN KERALA WATER AUTHORITY, REP. BY ITS MANAGING DIRECTOR

JUDGEMENT

(1.) In all these Writ Petitions, the petitioners are contractors, who were awarded with the works by the Kerala Water Authority, mainly in connection with drawing of pipelines and other matters. The question that arises in these cases is with regard to the deduction proposed to be made from the contract amounts at the rate of 1% thereof, towards the payment of the Cess payable under the provisions of The Building and Other Construction Workers' Welfare Cess Act, 1996, (hereinafter referred to as the "Cess Act"). In all these cases, interim orders were granted by this Court directing the Kerala Water Authority not to deduct the said amount at the said rate.

(2.) The challenge raised against such demands are mainly on the ground that the activities included in the contract are not entirely coming within the scope of the definition of "Building or other construction work" as defined under Sec. 2(1)(d) of The Buildings and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (hereinafter referred to as the "Regulation Act"). Thus, according to the petitioners, the deduction of 1% on the total contract value as specified in the contract, is beyond the scope of the statutory stipulations contained in the Regulation Act as well as the Cess Act. The petitioners have mainly relied on the observations made by the Hon'ble Supreme Court in Uttar Pradesh Power Transmission Corporation Limited and Another v. CG Power and Industrial Solutions Limited and Another [(2021) 6 SCC 15].

(3.) The respondents, i.e., State Government, the Kerala Water Authority as well as the Kerala Building and Other Construction Workers Welfare Board, filed their counter affidavits disputing the contentions raised by the petitioners and opposing their reliefs.