In Brief
The Food Corporation of India contracted with Pratap Kundu for handling and transport services at its Bikna Depot. The contractor quoted 471% above scheduled rates (ASOR) for all items, including casual labour supply. A pending Supreme Court case determined that casual labourers were entitled to Class IV employee wages. In 2010, the Supreme Court resolved the wage dispute, directing FCI to pay fixed wages directly to workers. The contractor later claimed 471% ASOR on the wages he had paid. The High Court partly referred the matter back for clarification but also directed determination of the contractor's profit. The Supreme Court held that the contractor is not entitled to 471% ASOR for casual labour; wages must follow the 2010 order. The contractor is entitled only to reimbursement of actual wages paid, not to profit determination. FCI's appeal was partly allowed; the contractor's appeal was dismissed.
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