SOUTHERN RAILWAYS Vs. AARTHI ENTERPRISES

JUDGEMENT

(1.) The Southern Railway is in appeal against a portion of an order passed on a contractor's writ petition against it. The directions are contained in paragraph 42 of the judgment and order impugned herein dated March 10, 2020. The appellant is not aggrieved by Clauses (a) and (b) of the directions. It is the third clause of the directions which is assailed.

(2.) Pursuant to a notice inviting tender, bids were made by several, including the writ petitioner firm, for undertaking the work of cleaning Chennai Park Railway Station for a period of three years. There were at least two other bidders. The writ petition was instituted upon the present appellants' failure to accede to the contractor's demand to meet the higher wage bill following the increase in minimum wages by a Government notification of January 19, 2017. The principal contention carried to the writ Court was that the first appellant herein, as the principal employer, was liable to bear the minimum wages of the employees deployed by the contractor and such position was also envisaged in the tender documents. Copious references are made to the schedules pertaining to the tender documents and the bid made on the basis of the four scheduled items. By the judgment and order impugned, the following directions were issued:

(3.) The appellants herein join issue as regards the third of the directions. According to the appellants, the writ petitioner had given a rebate of 27% on the total bid value which included both the minimum wages component and the GST on minimum wages. The appellants assert that if such was the bid of the writ petitioner, upon the minimum wages being enhanced and upon the principal employer being required to bear the enhanced GST component, the percentage of rebate cannot be altered as the rebate amount will operate on the enhanced minimum wages bill and the GST payable thereon.