1. Contract labour claim for unpaid wages — Liability of principal employer for arrears under the Contract Labour (Regulation and Abolition) Act, 1973. (Para 3 )
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1997 Supreme(SC) 712
1997(4) Supreme 547
SUPREME COURT OF INDIA
K. Ramaswamy and D.P. Wadhwa, JJ.
Senior Regional Manager, Food Corpn. of India, Calcutta -Appellant
versus
Tulsi Das Bauri & Ors. -Respondents
Civil Appeal No. 3136 of 1997
(Arising out of SLP (C) No. 16954 of 1996)
Decided on 21-4-1997
Counsel for the Parties :
For the Appellant : Y.P. Rao, Advocate.
For the Respondents : Bijan Kr. Ghosh, Advocate.
Important Points
IMPORTANT POINT
Principal employer is required to pay the wages in case the contractor commits default in payment of wages and term "wages" includes the balance of wages or arrears thereof.
Principal employer is required to pay the wages in case the contractor commits default in payment of wages and term "wages" includes the balance of wages or arrears thereof.
Subject
Labor Law - Contract Labor
Act Referred
Headnote
Contract Labour (Regulation and Abolition) Act, 1973-Section 21-Principal employer is statutorily responsible to ensure payment of wages as per law-He is entitled to have it recovered from contractor-Term Wages includes balance of wages or arrears thereof-Impugned judgment directing appellant to pay arrears of balance of the amount of wages to respondents, engaged as contract labours by contractor, suffered no illegality. (Paras 6 & &)
Legal Category Hierarchy
Table of Contents
2. Whether arrears of wages fall within the definition of wages under Section 21 of the Contract Labour (Regulation and Abolition) Act, 1973. (Para 4 )
3. Principal employer is statutorily responsible for ensuring wage payments and is liable for any short payment or default by the contractor. (Para 5 , 6 )
4. The term wages under Section 21 of the Contract Labour (Regulation and Abolition) Act, 1973 includes the balance of wages or arrears thereof. (Para 7 )
5. Appeal dismissed. (Para 8 )
6. Who is responsible for the payment of wages to contract labour?
The contractor is primarily responsible for paying wages. However, if the contractor fails to pay or makes short payments, the principal employer is statutorily liable to pay the full wages or the unpaid balance. (Para 5 , 6 )
7. Does the term wages under the Contract Labour (Regulation and Abolition) Act, 1973 include arrears?
Yes, the term wages includes the balance of wages or arrears thereof. (Para 7 )
8. What remedy does a principal employer have after paying unpaid wages of contract labour?
The principal employer is entitled to recover the amount paid from the contractor, either by deducting it from any amount payable under the contract or as a debt payable by the contractor. (Para 5 , 6 )
ORDER
Leave granted.
2. This appeal by special leave arises from the judgment of the Division Bench of the High Court of Calcutta passed on September 6, 1995 in FMAT No. 2098/94.
3. The undisputed facts are that respondent Nos. 1-91 were engaged as contract labour by Bhagwat Prasad Choudhury, Respondent No. 94 and while they were working, they were refused payment of the full wages. As a consequence, they laid claim for payment of the amount. Ultimately, the Division Bench has directed by the impugned judgment that the appellant shall be liable to pay the arrears of the balance of the amount of the wages.
4. Shri Y.P. Rao, learned counsel appearing for the appellant contends that the arrears of wages are not wages under Section 21 of the Contract Labour (Regulation and Abolition) Act, 1973 and that, therefore, the appellant is not liable to make the payment to the respondents. We find no force in the contention.
5. Section 21 postulates the responsibility for payment of wages. Under sub-section (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. Under sub-section (4), in case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deducting from any amount payable to the contractor under any contract or as a debt payable by the contractor. That liability has been prescribed under sub-section (2) thereof which says that 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 duty of such representative to certify the amounts paid as wages in such manner as may be prescribed.
6. Thus is could be seen that the princpal employer is statutorily responsible to ensure payment of the wages as per the law. In case the contractor commits default in the payment of the wages, the principal employer is made responsible for due payment and in case such payment is made, he is entitled to have it recovered by deducting from any amount payable to the contractor under the contract or as a debt payable by the contractor.
7. Thus, it is clear that the principal employer, is required to pay the wages. The term wages includes the balance of wages or arrears thereof. Under these circumstances, we do not think that it is a case warranting interference.
8. The appeal is dismissed. No. costs.
Appeal dismissed.
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