Here's a breakdown of a court case involving Gorkha Security Services and the Directorate of Health Services in Delhi. The case revolves around unpaid wages and costs related to a security services contract.
Gorkha Security Services, a partnership firm, was given a contract by the Directorate of Health Services in Delhi. This contract, dated December 21, 2010, was for providing security guards to various clinics from January 1, 2011, to December 31, 2012. The contract was extended until March 31, 2015.
The main problem started when the Directorate did not pay the increased wages as per the revised minimum wages before November 2014. Gorkha Security Services claimed that even though they paid their workers the higher wages, the Directorate did not pay them back these amounts.
"The Directorate of Health Services failed to pay Gorkha Security Services the increased contract rates, which were in line with the current minimum wages."
On July 22, 2015, Gorkha Security Services decided to use the arbitration clause due to non-payment issues. The arbitrator, appointed on January 11, 2016, looked at four claims:
The arbitrator approved the first two claims but turned down the claim for interest and costs.
Gorkha Security Services contested the arbitrator's decision regarding interest and costs in the Delhi High Court. Justice Harish Vaidyanathan Shankar found the arbitrator's decision on Claim No. 4 to be unclear and lacking explanation.
"The decision made about Claim No. 4 fits into Category 1, which includes cases where either no reasons are given or the reasons provided are so unclear."
The court canceled the arbitrator's decision on Claim No. 4 and sent the case back to the arbitrator for another review.
