The primary liability for payment of wages lies with the contractor, and the duty of the principal employer is to ensure that the wages are duly paid to the workers.

ORDER :

K.G. Balakrishnan, J. - This appeal is preferred by the Food Corporation of India against the judgment of the Division Bench of the High Court of Calcutta. A group of ninety-one workers, filed a writ petition before the Calcutta High Court contending that they have been working as casual workers under the contractor (Respondent 94) and that the contractor was liable to pay arrears of wages from March 1993 to February 1994. This amount so paid by the contractor was not reimbursed by the appellant Food Corporation of India to the contractor. These workers apprehended that as the Food Corporation of India had not reimbursed this amount, their wages for future period would not be paid by the contractor and in the writ petition they prayed for a writ of mandamus directing the appellant Food Corporation of India to perform their duty under Section 21 of the Contract Labour (Regulation and Abolition) Act, 1970 (for short "the Act"). The workers also prayed that their daily wages should not be stopped on account of the claim of contractor.

2. The learned Single Judge before whom the matter came up for consideration passed an interim order on 26-6-1995. The learned Single Judge directed the respondents in the writ petition to ensure compliance with Section 24(4) of the Act, so far as current liabilities are concerned. The contractor as well as FCI filed an appeal against the interim order passed by the learned Single Judge of the High Court. The Division Bench withdrew the original writ petition to its file and heard both the parties and disposed of the matter by the impugned judgment. Aggrieved by the same, the present appeal is filed before us by way of the special leave petition.

3. We have heard both the parties. Though all the workers have been served, no one has entered appearance.

4. We have heard the learned counsel for the contractor (Respondent 94) as well as the counsel for FCI. Originally the casual labourers were paid by the contractor and subsequently they raised some disputes regarding the rates of wages. It seems that the workers contended that they were entitled to be paid on a par with the wages payable to Class IV employees of FCI. The contractor alleged that he received a communication from the Labour Commissioner that the casual workers engaged by the contractor shall be paid as daily wages 1/26th of the monthly wages payable to the last grade employee of FCI and he shall pay the arrears of differential wages from March 1993 onwards. According to the respondent he paid these differential wages to the workers for the period from March 1993 to August 1994. The Division Bench by an interim order directed that 50% of the amount already paid by the contractor to these workers as differential wages for the period from March 1993 to February 1994 shall be paid by FCI. By the impugned judgment it was further directed that the balance of 50% amount shall also be paid by FCI to the contractor within a period of 14 days after deducting the income tax.

5. The counsel for the appellant contended that it is the liability of the contractor to pay the wages to the workers and if there is any default in making the payment the principal employer i.e. FCI is liable to pay the amount and later on recover it from the contractor. It was contended that if the contractor has already made the payment to the workers, he cannot seek any direction that this amount is to be reimbursed to him by the principal employer. Therefore, it is contended that the writ petition filed by the workers is misconceived.

6. Section 21 of the Act is the relevant provision for determining the rights and liabilities of the various parties under the contract. Section 21 reads as follows :

"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