Case Note & Summary
The dispute arose between the Orissa State Housing Board and Sitaram Lal regarding a construction contract for 50 duplex houses in Bhubaneswar. The contract was awarded to the respondent with a completion deadline of February 1, 1991, and a total value of 1.18 crores. Due to delays in project completion, the respondent requested an extension, which the Board granted under the condition that he would not claim escalated costs except for revised wages as per the Minimum Wages Act. The respondent subsequently filed a writ petition in the Orissa High Court seeking compensation for escalated costs, but later narrowed his claim to revised wages. The Board contended that the respondent had already received these wages, which was disputed by the respondent's counsel. The Supreme Court directed that if the respondent had not been paid the revised wages, they should be paid within eight weeks, referencing the supplementary agreement between the parties. The court set aside the High Court's judgments and disposed of the appeals with this directive.
Headnote
A) Contract Law - Construction Contract - Entitlement to Revised Wages - Minimum Wages Act, 1948, Section Not mentioned - The respondent sought compensation for escalated costs but limited his claim to revised wages under the Minimum Wages Act. The court found the request reasonable and directed payment of any outstanding wages within eight weeks if not already paid. Held that the respondent is entitled to the revised wages as per the agreement (Paras 2-3).
Issue of Consideration
Whether the respondent is entitled to revised wages as per the Minimum Wages Act and Government guidelines.
Final Decision
The Supreme Court directed that if the respondent had not been paid the revised wages as per the Minimum Wages Act and Government guidelines, they should be paid within eight weeks. The court set aside the High Court's judgments dated July 19, 2007.
Law Points
- Minimum Wages Act
- construction contract
- tender process
- compensation for escalated costs
