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(4) What has been the effect of the increase in minimum wages on fair wages?

(5) Is the contract indivisible as claimed as regards the payment of wages to unskilled workers for the works executed at the place (s) in M.P. and at different places of U.P. and if so, to what result?

(6) Is the work site No.10 located in M.P. or both in M.P. and U.P.?

(7) Is the claimant entitled to recover escalation in wages for the whole of the No.10 and if so, to what extent?

16. The Division Bench, by the impugned judgment and order dated 04.12.2008, has allowed the FAO (OS) No.116 of 1985 and made the Award dated 15.05.1986 rule of Court. However, the Division Bench, in FAO (OS) No.118 of 1995, has modified the impugned judgment and order of the learned Single Judge and directed the NTPC to make payment of Rs.95,394.10/- to the Construction Company for the increase in minimum wages from Rs.2.00/- to Rs.4.00/-. It is the correctness or otherwise of the said order which is the subject matter of these appeals by special leave.

24. The learned Arbitrator, keeping in view the possible construction that could be placed on Clauses 7, 16 and 53-A(b) of the General Conditions of the Contract, has thought it fit to allow only the increased wages paid by the respondent-Company from Rs.2.70/- to Rs.4.00/-, i.e., from the ‘fair wages’ as quoted in the escalation bill to the increased ‘minimum wages’. The learned Single Judge has more or less accepted this view of the learned Arbitrator and on the basis of the said rates has rightly concluded that the amount that requires to be paid by NTPC is only a sum of Rs.95,394.10/- . He has arrived at this figure keeping in view Rs.1.03/- as the difference of amount payable as per the contract. However, the Division Bench of the High Court, while modifying the conclusions reached by the learned Single Judge has thought it fit to direct the NTPC to pay the escalated wages by taking into account the difference of the minimum wages as payable on the date of submitting the tender and the increased minimum wages, i.e., Rs.2.00/- to Rs.4.00/-.

29. In our considered opinion, the learned Single Judge had rightly concluded that the difference shall be calculated between the ‘fair wages’ paid by the Construction Company before issuance of the notification and the increased minimum wages after issuance of the notification and if it is calculated in that manner, what requires to be paid is Rs.1.03/- after making necessary adjustments as provided under second proviso to Clause 53- A(b). However, the learned Division Bench had erroneously calculated the amounts payable based on the difference of minimum wages at the time of submission of tender forms and as increased by the Notification. The aforesaid amount shall carry interest at the rate of 9% per annum from the passing of the Award, dated 07.05.1986, till the date of actual payment.