9911796707
TMI Blog1979 (2) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Union of India be called upon to file the agreement entered into by him with the second respondent in Court and refer the dispute mentioned in the Original Suit to arbitration of the named arbitrator contemplated in the agreement or an arbitrator appointed by the Court. The complaint in the suit was that the defendant, the Union of India had arbitrarily, unilaterally and without any justification recovered a sum of ₹ 19,191 on 24-8-1977 from the bill amount payable to the plaintiff on account of wages payable to the labourers engaged by the plaintiff. It was contended that he had never defaulted payment of wages to the labourers engaged by him for the work, and therefore he disputed the claim of the defendant to recover such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Labour Officer or other person authorised to submit a report of result of his investigation or enquiry to the Executive Engineer concerned indicating the extent, if any, to which the default has been committed with a note that necessary deductions from the contractor's bill be made and the wages and other dues be paid to the labourers concerned. In case an appeal is made by the contractor under Clause (14) the actual payment to labourers will be made by the Executive Engineer after the Regional Labour Commissioner has given his decision on such appeal. It is provided in cl. (14) that any person aggrieved by the decision and recommendations of the Labour Welfare Officer or other person so authorised may appeal against such decision to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atsoever, in any way arising out of or relating to the contract, designs, drawings, specifications, estimates, instructions, orders or these conditions or otherwise concerning the works, or the execution or failure to execute the same whether arising during the progress of the work or after the completion or abandonment thereof shall be referred to the sole arbitration of the person appointed by the Chief Engineer, Central Public Works Department, in charge of the work at the time of dispute or if there be no Chief Engineer, the administrative head of the said Central Public Works Department at the time of such appointment. The Arbitration suit at the instance of the first respondent is evidently invoking Clause (25) of the Conditions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the second respondent is interested. Withholding of amount was only because of the obligation to do so by reason of the adjudication in accordance with Clause (13) of the Regulations already adverted to. Further, reference is made to Contract Labour (Regulation and Abolition) Act, 1970. Section 21 of the Act reads thus: 21, Responsibility for payment of wages : 1. A contractor shall be responsible for payment of wages to each worker employed by him as contract labour and such wages shall be paid before the expiry of such period as may be prescribed. 2. Every principal employer shall nominate a representative duly authorised by him to be present at the time of disbursement of wages by the contractor and it shall be the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an action similar to one where a debtor withholds payments to his creditor on account of a notice to a garnishes from Court. If he admits that he is willing to pay and withholding is only because of garnishee proceedings the withholding is under an obligation imposed by a statute and that cannot be a subject of arbitration. In these circum-stances Clause (25) would not apply in this case. 6. Even otherwise, for a more fundamental reason the Court should have been alerted to the fact that no arbitration would be possible. It goes without saying that arbitration depends for its authority and validity on consent of parties and there cannot be compulsory arbitration. Arbitration only works out an earlier agreement of parties that they would ..... X X X X Extracts X X X X X X X X Extracts X X X X
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