Indian Kanoon - Search engine for Indian Law

12. The Arbitral Tribunal considered the aforesaid dispute and found in favour of L&T. It held that L&T is entitled for reimbursement of additional expenditure on account of the increase in the basic minimum rates of wages for various categories of labour. The Arbitral Tribunal observed that the Notification of the minimum wages for labour are in two parts. The first being the basic minimum wage rate and the second being a Variable Dearness Allowance (VDA). The second component of VDA had been revised from time to time to commensurate with the price in the cost of living. The Arbitral Tribunal found that insofar as the VDA is concerned, the same was factored in the formula for the variation in the Contract Price, as stipulated in Appendix-2 of the Contract Agreement. This was apparent as in the terms of the formula, the price for labour component was linked to the "All India Consumer Price Index for Industrial Workers" as published by Labour Bureau. Thus, the Arbitral Tribunal was persuaded to accept that Appendix-2 only factored in the variable cost of living allowance as published by the Labour Commissioner periodically and did not factor in any rise in the basic minimum rate of wages.