IN THE HIGH COURT OF JHARKHAND AT RANCHI
SANJAY KUMAR DWIVEDI, J.
Bijaya Chandra Nayak @ B.C. Nayak, son of Sri Chandra Mani Nayak - Petitioner
Versus
The State of Jharkhand and Anr. - Opp. Parties
Cr.M.P. No. 2636 of 2013
Decided On : 21-03-2023
Contract Labour (Regulation and Abolition) Act, 1970 – Section 10(1), 23 , 24 and 25 - Contract work - Engaged 29 contract labours - Extraction of coal - Show cause notice - Filed for quashing of entire criminal proceeding – Held, Court has gone through materials on record - It is an admitted fact that petitioner was the General Manger of Bastacolla Area of M/s BCCL and not principal employer - Company namely, M/s B.C.C.L has not been made accused in present complaint and in absence of company petitioner has been made accused - Section 25 of Act provides that a persons who are responsible for day to day affairs of company are liable to be prosecuted - In case in hand nothing has been disclosed how petitioner is so far M/s BCCL is concerned, looking after day to day affairs of company - There is no allegation in the complaint that petitioner is Manager of mine, in view of Section 2(1)(g)(iii) of Act - He is not principal employer as under that Section only Manager of the mine is responsible - Petition allowed and disposed of.
JUDGMENT :
1. Heard Mr. Anup Kr. Mehta, learned counsel for the petitioner, Mr. Tapas Roy, learned counsel for the State and Mrs. Bakshi Vibha, learned counsel for the O.P. No. 2.
2. This petition has been filed for quashing of entire criminal proceeding in connection with CL (R & A) Prosecution Case No. 29/2013 including the order dated 15.01.2013 whereby the learned Magistrate has been pleased to take cognizance of an offence under section 23 and 24 of the Contract Labour (Regulation and Abolition) Act, 1970, pending in the Court of learned Chief Judicial Magistrate, Dhanbad.
3. The prosecution case arises out of a written complaint filed by the O.P. No.2 alleging interalia that the complainant is the Labour Enforcement Officer (Central) having jurisdiction over the establishment of the accused person. The O.P. No. 2 inspected the establishment of Rajapur Open Cast Project L-6 Patch at Bastacolla Area of BCCL on 18.10.2012 and observed that in contravention of section 10(1) of the Contract Labour (R&A) Act, 1970 the Principal employer has engaged 29 contract labours through M/s Calcutta Industrial Supply Corporation, the contractor for executing the contract work of earth cutting and removal of over burden for extraction of coal at L-6 Patch of Rajapur Open Cast Project under Bastocolla Area of M/s BCCL which is prohibited by a notification SO 2063 dated 21.06.1988. A show cause notice dated 21/26.11.2012 was served. In paragraph 7 of the complaint it has been stated that the petitioner as well as the accused contractor has jointly committed the offence. The said complaint was registered as CL (R&A) Prosecution Case No. 29/2013.
4. Mr. A. K. Mehta, learned counsel for the petitioner submits that the O.P. No. 2 has committed a gross error in implicating the petitioner as the Principal accused no. 1 although the company namely, M/s Bharat Coking Coal Limited has not been made an accused. He further submits that the expression “establishment” has been defined under section 2(e) of the CL (R & A) Act, 1970, to mean-(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. He further submits that the expression “principal employer” has been defined in section 2(g) of the CL (R & A) Act and section 2(g) (iii) provides that the principal employer in relation to a mine would be the owner or agent of the mine and where a person has been named as the manager of the mine, the person so named. He submits that the petitioner is neither the owner of Rajapur Open Cast Project nor the agent. He is also not the manager of Kujama. He is also not the principal employer. He submits that the petitioner at the relevant time was the General Manager, Bastacolla Area of M/s BCCL. He submits that in the light of Section 7 of the CL (R & A) Act provides registration of certain establishment. He submits that the establishment of Rajapur Open Cast Project of BCCL has been registered as an establishment under sub section 2 of section 7 of the Act by the Registering Officer cum Assistant Labour Commissioner (C) Dhanbad-IV. He further submits that the petitioner was General Manager of Bastacolla Area of M/s BCCL and he is neither the owner of Rajapur Open Cast Project nor the agent and in that view of the matter the entire criminal proceeding may be quashed.
5. Learned counsel for the O.P. No. 2 submits that the prosecution complaint filed against the petitioner is just and proper and as per the provision of law for the violation of Section 10(1) of the Contract Labour (R&A) Act, 1970. She submits that the petitioner is General Manager, representing the Bastacolla Area of M/s BCCL and responsible for all affairs of the company related to work carried out a Rajapur Open Cast Project/Colliery of BCCL. She submits that the accused is Principal Employer within the meaning of Sub-Section 1(g) of Section 2 of Contract Labour (Regulation & Abolition) Act, 1970
S.K. Alagh V. State of Uttar Pradesh & Others. (2008) 5 SCC 662
State of Madras v. C.V. Parekh and Another
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Anil Gupta v. Star India Private Limited and Another (2014) 10 SCC 373
The main legal point established is that under the Contract Labour (Regulation and Abolition) Act, 1970, officers of a company can only be prosecuted if the company is made accused, and specific alle....
The main legal point established in the judgment is that the definition of 'principal employer' under the Contract Labour (R&A) Act, 1970, is crucial in determining liability under the Act.
The requirement for the company to be made an accused and the accused to be responsible for the day-to-day affairs of the company under Section 25 of the Contract Labour (Regulation and Abolition) Ac....
The liability of officers of a company under the Contract Labour (Regulation and Abolition) Act, 1970 is contingent upon their involvement in the day-to-day affairs of the company, and the prosecutio....
The liability of individuals under the Contract Labour Act is contingent on their involvement in the day-to-day affairs of the company and specific averments regarding their roles in the business of ....
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