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2017 Supreme(Jhk) 1187

IN THE HIGH COURT OF JHARKHAND AT RANCHI
Rongon Mukhopadhyay, J.
Engineering Projects (India) Limited - Petitioner
Versus
The State of Jharkhand & Anr. - Opposite Parties
Cr. M.P. No. 610 of 2005
Decided On : 17-07-2017

Advocates:
Advocate Appeared:
For the Petitioner: Mr. A.K. Mehta
For the State : Mr. Ram Prakash Singh
For the Opposite Parties : Mr. Laxman Kumar

Vague and unspecific allegations cannot lead to criminal prosecution under penal provisions, and there must be direct responsibility and specific allegations to prosecute individuals under the Act.

Headnote:

Contract Labour - Prosecution of Chairman-cum-Managing Director - Section 23 of the Contract Labour (Regulation & Abolition) Act, 1970 - [Section 23] - The judgment discusses the definition of principal employer in a mine, the role and liability of the Chairman-cum-Managing Director, and the interpretation of the provision for prosecuting individuals under the Act. The court emphasizes the need for specific allegations and direct responsibility to prosecute individuals under penal provisions. The judgment refers to a previous case to support the conclusion that vague and unspecific allegations cannot lead to criminal prosecution.

Fact of the Case:

The petitioner sought quashing of criminal proceedings for an offence under section 23 of the Contract Labour (Regulation & Abolition) Act, 1970, alleging that the Chairman-cum-Managing Director cannot be prosecuted as a Principal Employer.

Finding of the Court:

The court found that the petitioner, as the Chairman-cum-Managing Director, cannot be directly held responsible for the alleged offence under section 23 of the Act, as there were no specific allegations implicating the petitioner in the engagement of contract labours in a prohibited place of work.

Issues: The main issue was whether the Chairman-cum-Managing Director could be prosecuted as a Principal Employer under section 23 of the Act.

Ratio Decidendi: The court held that vague and unspecific allegations cannot lead to criminal prosecution, emphasizing the need for direct responsibility and specific allegations to prosecute individuals under penal provisions.

Final Decision: The application to quash the criminal proceedings, including the order taking cognizance for the offence under section 23 of the Contract Labour (Regulation & Abolition) Act, 1970, was allowed, and the entire criminal proceeding was quashed and set aside.

JUDGMENT :

Rongon Mukhopadhyay, J.

Heard Mr. A.K. Mehta, learned counsel for the petitioner and Mr. Laxman Kumar, learned counsel for O.P. No. 2.

2. In this application, the petitioner has prayed for quashing of the entire criminal proceeding in connection with Complaint Case No. 347 of 2003 including the order dated 23.12.2003, passed by the learned Chief Judicial Magistrate, Chatra, whereby and where under cognizance has been taken for the offence under section 23 of the Contract Labour (Regulation & Abolition) Act, 1970. (Hereinafter referred to as the Act)

3. A complaint was filed before the learned Chief Judicial Magistrate, Chatra wherein it was alleged that the accused nos. 1 and 2 had approved the removal of overburden and loading of coal at Ashoka Project, Piparwar Area of M/s Central Coalfields Limited by engaging contract labours prohibited by the Government of India, Ministry of Labour vide Notification No. S.O.2063 dated 2nd July, 1988. In the said complaint being Complaint Case No. 347 of 2003, cognizance was taken by the learned Chief Judicial Magistrate, Chatra on 19.12.2003 under section 23 of the said Act.

4. Mr. A.K. Mehta, learned counsel for the petitioner, has assailed the order taking cognizance by submitting that the petitioner company is being represented through the Chairman-cum-Managing Director and Engineering Projects India Limited is under the administrative control of the Ministry of Heavy Industry, Government of India. It has further been submitted that company is executing several projects all over the country and the petitioner has already sub-delegated the powers to the Incharge of Eastern Regional Office at Kolkatta and the Site In-charge at Ranchi to execute and implement various projects under their jurisdiction. Learned counsel further submits that day to day affairs of the company are managed by the subordinate officers and the Chairman-cum-Managing Director is not liable to be proceeded for any violation of the rules. Learned counsel further submits that petitioner is not the Principal Employer as defined in Section 2(g)(iii) of the said Act and therefore the petitioner being not a Principal Employer cannot be prosecuted for the offence under section 23 of the said Act. Learned counsel in support of his contention has referred to the order passed in the case of A.K. Sahay v. The State of Jharkhand And Anr. reported in 2011 (2) JCR 558.

5. Mr. Laxman Kumar, learned counsel for O.P. No. 2, on the other hand, has stated that the prohibited work by engaging contract labours were being carried out at the behest of the petitioner and other persons named in the complaint petition and therefore they are liable to be prosecuted under section 23 of the Act. It has been stated that delegation of power to the General Manager and Additional General Manager posted at the site was done in the year 1970 and the same is confined to merely execution and implementation of the project. Learned counsel further submits that the petitioner being the Chairman cum Managing Director of the accused company is a Principal Employer as in terms of Section 25(2) of the Act where an offence has been committed by a Company with the consent or in connivance with the Director, Manager, Managing Agent or any other officer of the company, the company shall be deemed to be guilty. Learned counsel submits that there is clear violation of labour laws by the petitioner and therefore present application is liable to be dismissed.

6. The main plank of argument of learned counsel for the petitioner seems to be that the Chairman-cum-Managing Director of the petitioner company does not come within the purview of definition of a Principal Employer and therefore he cannot be prosecuted for the offence as alleged. Section 2(g)(iii) of the Act reads as under:-

"2(g)(iii) "Principal employer" means-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".

7. The definition of pr







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