1. Heard learned Advocate Mrs. Vasavdatta Bhatt for appellants and learned Advocate Mr. YK Gadhia for respondent no.2.

2. Appellants have challenged order passed by Workmen's Compensation Commissioner Kachchh at Gandhidham in WC Application (NF) NO. 142 of 1996 dated 16.2.2006 wherein WC Commissioner has directed opponents no.2 and 3 to pay amount of compensation of Rs.1,09,475/- with 50 per cent penalty and 12 per cent interest with costs of Rs.500.00 to claimant and thereafter to recover whole such amount from opponent no. 1.

3. Learned Advocate Mrs. Vasavdatta Bhatt for appellants submitted that original applicant means claimant was not an employee of appellants but he was an employee, engaged by opponent NO.1, Ansari Builders as contractor. She further submitted that during course of employment, if any accident occurred and employee received injury, then, it is liability of his immediate employer and not that of present appellants. She also submitted that there is agreement between opponent NO.1 Ansari Builders and appellants which has been quoted at page 4 which is reproduced as under:

Condition No. 26 of General Conditions of Contracts for Lump Sum Contracts (I.A.F.W.-2159), Term Contracts for Artificers' Work (IAFW-1821) and Measurement Contracts (I.A.Fs.W-1779-A) under Military Services reads as under:

'26. Labour.- The contractor shall employee labour in sufficient number to maintain the required rate of progress and of quality to ensure workmanship of the degree required by the Specifications and to the satisfaction of the Engineer-in-Charge.

The contractor shall remain liable for the payment of all wages or other moneys to his work people or employees under the Payment of Wages Act, 1936, Minimum Wages Act, 1948, Employer's Liability Act, 1938, Workmen's Compensation Act, 1923,or any other Act or enactments relating thereto and rules framed thereunder from time to time. The Contractor shall work only on and during the hours of a working day unless he obtains the prior written approval of the Engineer in Charge to do otherwise. If such approval is given no liability in respect of any excess cost arising therefrom shall be incurred by Government.

The contractor shall furnish to the Engineer in Charge everything, a distribution return of the number and description by trades of his work people employed on the works.

The Contractor shall during the progress of the Works comply at his own expense with all the rules and provisions contained in the MES Model Rules for the protection of health and sanitary arrangements for workers employed by contractors (appended hereto as Annexure C to these Conditions) and shall at his own expenses provide for all facilities in connection therewith to the satisfaction of the Engineer in Charge and on his failure to do so, the Garrison Engineer shall be entitled to provide the same and recover the cost thereof from the contractor.

The contractor shall not employ in connection with the works any person who has not completed his fifteenth year of age.

The contractor shall at his own expense arrange for all the safety provisions as per the MES Safety Code (appended to these Conditions as an Annexure 'B') and shall at his own expense provide for all facilities in connection therewith to the satisfaction of the Engineer in Charge and on his failure to do so, the GE shall be entitled to provide the same and recover the cost incurred in that behalf from the Contractor. Provided further that in case of failure to arrange for the safety provisions as above, the contractor should in addition be liable to pay a penalty of Rs.50 for each default.

4. Relying upon aforesaid condition, it is submitted by learned Advocate Mrs. Bhatt that it is liability accepted by contractor that in case if accident occurs, then, whatever compensation is required to be paid, same has to be paid by contractor respondent no.2 and it is not liability of appellant. Thus, as per her submission, it is not liability of