VidhiSangh

Supreme Court of India · 29/11/2019

FOOD CORPORATION OF INDIA versus PRATAP KUNDU

[2019] 14 S.C.R. 1103 · 2019 INSC 1305

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Summary

The Court rejected the contractor’s demand for 471% above-schedule rates on casual-labour wages under an FCI handling contract. Unlike other scheduled items, the labour item expressly deferred wages to the pending litigation, ultimately determined by the Supreme Court’s 2010 order. Remand survived only to verify wages under that order, including conditional reimbursement of wages paid by the contractor. The High Court’s further direction to determine contractor profit had no basis and was set aside.

Issues

  1. Whether the 471% above-schedule quotation applied to the casual-labour item.
  2. Whether remand could include determination of the contractor’s profit beyond wages governed by the earlier Supreme Court order.

Held

Result

FCI’s appeal partly allowed and contractor’s appeal dismissed. Claim to 471% ASOR on casual-labour supply rejected. Remand limited to wage determination under the 14 January 2010 order; direction to determine contractor profit set aside. Unreimbursed wages actually paid by the contractor remained reimbursable as specified. No costs.

Judgment PDF: Supreme Court of India, [2019] 14 S.C.R. 1103.