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2025 Supreme(Jhk) 710

IN THE HIGH COURT OF JHARKHAND AT RANCHI
SUJIT NARAYAN PRASAD, PRADEEP KUMAR SRIVASTAVA, JJ.
The Jharkhand Building and Other Construction Workers Welfare Board - Appellant
Versus
M/s Anvil Cables Private Limited & Others – Respondent
L.P.A. No. 497 of 2024 With L.P.A. No. 495 of 2024, L.P.A. No. 496 of 2024, L.P.A. No. 506 of 2024, L.P.A. No. 507 of 2024, L.P.A. No.508 of 2024, L.P.A. No.509 of 2024 and L.P.A. No.566 of 2024.
Decided on : 05-03-2025

Advocates:
Advocate Appeared:
For the Appellants :Mr. Krishna Murari, Advocate
For the Respondent:Mr. M.S.Mittal, Advocate, Mr. Salona Mittal, Advocate, Ms. Amrita Singh, Adv., Mr. Ashutosh Anand, A.A.G-III, Ms. Shilpi, A.C. to S.C. (Mines)-II, Mr. Sachin Kumar, Sr. S.C., Mr. Aditya Kumar, Advocate (A.C. to Mr. Ashok Kr. Yadav Sr. S.C)

The court evaluates the involvement of the welfare board in legal proceedings concerning unjust enrichment, clarifying the necessity of establishing locus in absence of a direct contractual relationship.

Headnote:(A) Jurisdiction and locus standi - Unjust enrichment - Contract Act, 1872 - Section 72 - Labour cess - The appellant Board claims locus based on received funds for welfare purposes, arguing against their refund due to unjust enrichment principles. Court evaluates whether the Board can contest the matter when not a party to the contract. (Paras 2-6)

(B) The necessity of the Board's involvement in cases concerning funds deducted by JUVNL without authority, involving an examination of the law's applicability regarding unjust enrichment. (Paras 7-8)

Findings of Court:
The necessity of Board's presence is affirmed for further legal examination concerning its locus in the matter.

Issues: The main issues include the Board's legitimacy as a party, and the appropriateness of the contract's terms and conditions between the involved parties.

Ratio Decidendi: The court determined that despite the funds being transmitted to the Board, it must establish its right to contest claims concerning those payments under unjust enrichment principles and examine jurisdictional authority.

Result: Labour Commissioner-cum-Chairman of the Board must appear with documents for further proceedings.

Table of Content
1. analysis of locus standi and unjust enrichment claims. (Para 1)
2. argument on unjust enrichment principle. (Para 2 , 3 , 4)
3. court analysis on locus standi of the board. (Para 5 , 6 , 7 , 8)
4. next steps and scheduling for move forward. (Para 9 , 10)

ORDER :

1. This Court has heard Mr. Krishna Murari, learned counsel for the appellant.

2. The emphasis of argument is that the Board is having locus on the ground that the money which has taken by JUVNL, establishment by way of one per cent labour cess, has been transmitted in the account of Board for the purpose of welfare of labourers.

3. It has been contended that the said amount has been spent for welfare measure of the Labourers and as such, the same cannot be refunded, since, the amount has been spent.

4. The argument has been advanced on the principle of unjust enrichment.

5. This Court, after hearing the aforesaid argument, is of the view that:-

(i) The appellant is required to establish the locus to be of a necessary party merely because the amount has been transmitted in the account of Board. According to the Board, which has been spent for welfare of the labourers.

(ii) Whether the amount, if any, transmitted in the account of the Board, which has been deducted by the establishment, JUVNL without any authority, as per the proposition laid down in the judgment rendered in the case of Uttar Pradesh Power Transmission Limited & Anr. Vrs. CG Power and Industrial Solutions Limited & Anr., reported in (2021) 6 SCC 15 then merely because the amount has been deducted and transmitted in the account of the Board, contrary to the law laid down by the Hon’ble Apex Court under Article 141 of the Constitution of India, can the principle of unjust enrichment will be applicable.

(iii) The JUVNL is accepting the proposition of law laid down by the Hon’ble Apex Court in the case of Uttar Pradesh Power Transmission Limited (supra) since, the order passed by the learned Single Judge has not been challenged by the JUVNL and as such, in such circumstances, is it available with the Board to contest the case, even though, the Board is no where in any way in the transaction of money rather the same is in between the petitioner and the JUVNL.

(iv) The emphasis has been given of applicability of Section 72 of the Contract Act and as such, it requires consideration that how the Contract Act will be applicable when the Board is not a party in the Contract, said to be concluded one, rather, the party to the Contract, said to be concluded, is in between the writ petitioner and the JUVNL.

6. This Court has carved out the aforesaid issues of consideration so as to reach to the conclusion as to whether the Board is having any locus to contest the case claiming itself to be necessary party.

7. Further, if any amount has been transmitted in the account by any of the establishment under the head of ‘Labour Cess’ having no authority to deduct the said amount, can the litigant concerned be allowed to suffer merely because the said amount, as per the Board, has been spent.

8. This Court, therefore, is of the view that although, the learned counsel for the appellant has argued the matter by making reference of the judgment passed by the Hon’ble Apex Court in the case of Uttar Pradesh Power Transmission Limited (supra) but, interaction with the Labour Commissioner-cum-Chairman, Jharkhand Building and Other Construction Worker Welfare Board is required in the present case.

9. Accordingly, the Labour Commissioner-cum- Chairman, Jharkhand Building and Other Construction Worker Welfare Board is to appear in-person along with relevant documents to assist the Court on the next date of hearing.

10. Let these matters be listed on 11.03.2025 as a first case.

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