A Government Company “X” wants to construct a public road on Government’s land which will give approach to its factory. The road shall also be used by public as well. Since the road to be constructed is a public road, so its ownership shall vest with Government’s public work department (PWD).
For the construction of road on 100% contribution basis, company “X” approaches PWD. PWD accepts the offer and makes an estimate of Rs. 50 Cr. Company “X” deposits Rs. 50 Cr with PWD with a condition that in case of final cost of project exceed the estimated amount, Company “X” shall deposit extra amount to cover the deficit and vice versa.
As per the term of contract, Company “X” shall not have any control over road construction work i.e. no control over road completion time, drawing and design, construction site, sub-contractor, material procurement, manpower and quality of construction etc. Even after construction, the road shall be owned by PWD and not by Company “X”
The PWD then prepares DPR/drawing design and issues contract to contractor. The contractor completes the work at Rs. 45 Cr. Finally Rs. 5 Cr is returned to Company “X” by PWD.
My Question is: - Who is employer in the above case?
(Note: Facts to be considered while framing opinion: - Company “X” is a Government Company; PWD is also a Government Department. Only sub contractor is a private firm. The important thing is this that Government Company has no control over road completion time, drawing and design, construction site, sub-contractor, material procurement, manpower and quality of construction etc.)
For the construction of road on 100% contribution basis, company “X” approaches PWD. PWD accepts the offer and makes an estimate of Rs. 50 Cr. Company “X” deposits Rs. 50 Cr with PWD with a condition that in case of final cost of project exceed the estimated amount, Company “X” shall deposit extra amount to cover the deficit and vice versa.
As per the term of contract, Company “X” shall not have any control over road construction work i.e. no control over road completion time, drawing and design, construction site, sub-contractor, material procurement, manpower and quality of construction etc. Even after construction, the road shall be owned by PWD and not by Company “X”
The PWD then prepares DPR/drawing design and issues contract to contractor. The contractor completes the work at Rs. 45 Cr. Finally Rs. 5 Cr is returned to Company “X” by PWD.
My Question is: - Who is employer in the above case?
(Note: Facts to be considered while framing opinion: - Company “X” is a Government Company; PWD is also a Government Department. Only sub contractor is a private firm. The important thing is this that Government Company has no control over road completion time, drawing and design, construction site, sub-contractor, material procurement, manpower and quality of construction etc.)