In Brief
The Union of India contracted with Varindera Constructions Ltd. for construction work with a contract clause (Clause 19) explicitly prohibiting any escalation or reimbursement for wage increases during execution. When the Government of Haryana later increased minimum wages, the contractor claimed reimbursement. The arbitrator partly granted the claim, upheld by the High Court, which interpreted Clause 19 alongside Clause 25. The Supreme Court held that Clause 19's plain language unambiguously bars all wage escalation claims. Clauses 19 and 25 deal with separate matters and cannot be read harmoniously to create an exception. The Court set aside the awards below, holding the contractor had no entitlement to claim wage escalation compensation.
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