SUPREME COURT OF INDIA
A.N. RAY, C.J.I., P. JAGANMOHAN REDDY, S.N. DWIVEDI, P.K. GOSWAMI AND R.S. SARKARIA, JJ.
M/s. Gammon India Ltd. etc. etc., Petitioners
Versus
Union of India and others Respondents.
Writ Petns. Nos. 202 of 1973 413, of 1971; 92. 330, 375, 391, 509 and 626-627 of 1972 and 114, 315-316 of 1973.
Writ Petn. No. 1906 of 1973;
Goverdhan Lal and others, Petitioner
Versus]
Union of India and others, Respondents.
Writ Petns. Nos. 202 of 1973; 413 of 1971, 92, 320, 330, 375, 391, 509 and 626-627 of 1972; 114, 315, 316 of 1973 and Writ Petn. No. 1906 of 1973, D/-.
Constitution of India, 1950 – Articles 14, 15 and 32 - Contract Labour (Regulation and Abolition) Act, 1970 - Section 2 (c), 2 (e) , 2 (i) , 2 (b) , 10 and 28 - Central Rules - Rule 41 and 25 (2) (v) (b) – Workmen - Business of contractors for construction of roads, buildings, weigh bridges and dams - Contract labour - Duties and liabilities on contractors – Licences - Whether holder of a licence has, without reasonable cause failed to comply with condition of licence - Petitioners contend that they are not contractors within definition of Act - Work of petitioners is not any part of work of principal employer nor is it work "in connection with work of establishment", namely, principal employer - Work of petitioners is normally not done in premises of "establishment" of principal employer - Held, Neither finality nor alternation is contemplated in any order under Section 34 of the Act. Section 34 is for giving effect to provisions of Act - This provision is an application of internal functioning of the administrative machinery - Therefore, Section 34 of Act does not amount to excessive delegation - Section 28 of Act was challenged as conferring arbitrary and unguided power and, therefore violative of Articles 14 and 15. Section 28 of Act confers power on Government to appoint persons as it thinks fit to be inspectors for purposes of Act and such inspectors shall have power to enter at all reasonable hours premises or place where contract labour is employed for purpose of examining any register or record or notice and examine any person and seize or take copies of documents mentioned therein - When they have reasons to believe that an offence has been committed, they can seize or take copies - Petitions dismissed.
Judgment
RAY, C. J.:- These petitions under Article 32 of the Constitution challenge the validity of the Contract Labour (Regulation and Abolition) Act, 1970 referred to as the Act and of the Contract Labour (Regulation and Abolition) Central Rules and Rules of the States of Rajasthan and Maharashtra.
2. The petitioners carry on the business of contractors for construction of roads, buildings, weigh bridges and dams.
3. The Act requires contractors to take out licences. The Act also imposes certain duties and liabilities on the contractors.
4. The Act defines in Section 2 (c) a "contractor" in relation to an establishment to mean a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or Articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor.
5. The other definitions relevant to the meaning of a contractor are establishment, principal employer and workman.
6. "Establishment" as defined in Section 2 (e) of the Act means (i) any office or department of the Government or a local authority, or (ii) any place where any industry, trade, business, manufacture or occupation is carried on.
7. "Principal employer" as defined in Section 2 (g) of the Act means (i) in relation to any office or department of the Government or a local authority, the head of that office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf, (ii) in a factory, the owner or occupier of the factory and where a person has been named as the manager of the factory under the Factories Act, 1948, the person so named, (iii) in a mine, the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named, and (iv) in any other establishment, any person responsible for the supervision and control of the establishment.
8. "Workman" is defined in Section 2 (i) of the Act to mean any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled or un-skilled manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied.
9. Section 2 (b) of the Act states that a workmen shall be deemed to be employed as "contract labour" in or in connection with the work of an establishment, when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer.
10. The petitioners contend that they are not contractors within the definition of the Act. They advance two reasons. First, the work of the petitioners is not any part of the work of the principal employer nor is it the work "in connection with the work of the establishment", namely, principal employer. Second, the work of the petitioners is normally not done in the premises of the "establishment" of the principal employer.
11. Relying on the definitions, counsel for the petitioners contended that establishment means any place where any industry, trade, business, manufacture or occupation is carried on and, therefore, the workmen employed by the petitioners are not contract labour because they are not employed in connection with the work of the establishment. The work of the establishment is, according to the petitioners, not only at the place where the business, trade, industry of the establishment is carried on but also the actual business or trade or industry of the establishment. The entire emphasis is placed by the petitioners on the works a work of any establishment". By way of illustration it is said that if a banking company which is an establishment which carries on its business at Delhi employs the petitioners to construct a building at Allahabad the building to be constructed is not the work of the bank. It is said that the only work of the bank as an establishment is banking work and, therefore,
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.