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3. The appellant filed a claim asserting that such increase in minimum wages could not have been foreseen and that an additional cost was occasioned thereupon, which was not taken into account while tendering. The same was also not contemplated in the indexing of any inputs to the Price Adjustment Formula, as contained in Clause 70 of the General Conditions to the Contract (GCC). The financial impact of increase of Minimum Wages occasioned due to Subsequent Legislation, is payable to the appellant in terms of Clause 70(v) of GCC. The appellant, thus made the following claims:-

(v) award Rs. 5.75 lacs (subject to modification to actuals) as the cost of arbitration as requested in para 6.7.5 herein above;
(vi) grant such other relief as considered fit and proper by the Arbitral Tribunal ........"

4. The appellant sought an amount of Rs.66.03 Crores plus interest on the basis of the formula prescribed in the Contract, after it being tweaked/altered so as to take note of the calculation of price escalation on account of increase Minimum Wages in respect of the CPI. The learned Arbitrator after considering the background, documents and the contentions of the parties, framed the issues for consideration, as under:-

12. It is further stated that the Arbitral Tribunal had arrived at a figure of Rs.77.26 Crore as the total expenditure towards the labour by placing its conclusions on the evidence and by breaking down the unit rates, which admittedly formed a part of the Contract and which as per the Clause 1.35 of IFB was to be used as a recourse in case of dispute. The labour component in the breakdown of unit rates, was approximately 10%, as has also been considered by the learned Arbitral Tribunal. The position that labour component realised without factoring in the increase in Minimum Wages, was 10% of the total work done was confirmed by the appellant in its calculations submitted vide submissions dated 20.04.2007 and 01.05.2007. The proportionate increase in the Minimum Wages was also admitted and supported by the statutory Notifications. Based on these factors, the Arbitral Tribunal arrived at an amount of Rs.77.26 crore as the total expense incurred towards labour, after factoring in the increased Minimum Wages.

Thus, the contention of the Claimants that he had to incur additional expense on payment of overtime to the labour as a result of increased minimum wages is sustained. However, as per the submissions made before tile Arbitral Tribunal, the amount of Rs.27 .42 crore aforesaid has been arrived at after taking into account, the factor of direct and indirect expenses in payment made to the labour and escalation. Thus, although the contention of the Claimants regarding provision of 150% towards indirect expenses as per sealed envelope is sustained but this will not have any effect on the amount of Rs.27.42 crore as this factor is already included in this amount.