In Brief
Union of India awarded two construction contracts to Varindera Constructions (lowest bidder). The contract explicitly stated in Clause 19 that no escalation or reimbursement for wage increases would be permitted. After a government notification increased minimum wages, the contractor claimed reimbursement. An arbitrator partially granted this claim, and the High Court upheld it, interpreting Clause 19 in light of Clause 25. The Supreme Court reversed this, holding that Clause 19's plain language prohibits all wage escalation claims, regardless of statutory requirement, and cannot be read with unrelated Clause 25. The contractor, having voluntarily agreed, cannot claim statutory wage increase reimbursement.
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