PLR PROJECTS PVT LTD Vs. WESTERN COALFIELDS LIMITED

JUDGEMENT

(1.) Rule made returnable forthwith.

(2.) Two bank guarantees dated 25.08.2008 and 14.05.2011, each for an amount of Rs.1,07,29,750/- furnished by the petitioners in respect of the work in question, were invoked by letter dated 26.02.2013 addressed to the Branch Manager, Bank of Maharashtra, solely on the ground that the petitioner - Contractor has not paid to his employees salary and wages as per "Law of the Land" applicable to the workmen of the colliery/washery where the petitioner - Contractor is working under a contract, in terms of Clause 31.01 of the conditions of the Contract. It is not in dispute that the employees have been paid minimum wages applicable in terms of the provisions of the Minimum Wages Act, which was applicable even to the employees working in the establishment of the respondents.

(3.) It was the defence raised by the respondents before this Court that in terms of Clause 31.01 referred to above, "the Law of the Land" referred to therein includes the terms of wages agreed under the National Coal Wage Agreement dated 24.01.2009 between the respondent - establishment and its coal workers. Undisputedly, the rate of payment of wages as per this Agreement was higher than the minimum wages prescribed. The stand of the respondents is that the petitioners had failed to pay wages as per the National Coal Wage Agreement to the employees employed by the petitioner - Contractor for the work in question.