2006 Supreme(All) 180
IN THE HIGH COURT OF ALLAHABAD
BHARATI SAPRU
CHANEL CHHAP FERTILIZER AND CHEMICALS LTD. - Appellant
Versus
LABOUR COMMISSIONER (U.P.), KANPUR - Respondents
C. M. W. P. 29381 Of 1994
Decided On : 01/18/2006
J.N.TIVARI, K.S.SINGH, S.CHATTERJEE, S.S.Mishra
The obligation under Rule 25 (2) (v) (a) of the Rules, 1975 is limited to the contractor and does not impose liability on the principal employer. The burden of proof cannot be shifted to the principal employer, and the obligation under Section 21 of the Act, 1970 is confined to contracted wages.
Headnote:
Contract Labour - Wages Dispute - U. P. Contract Labour (Regulation and Abolition)Rules, 1975 - Rule 25 (2) (v) (a), Section 7 of the Contract Labour (Regulation and Abolition) Act, 1970 - [Rule 25 (2) (v) (a), Section 7 of the Act, 1970]
Fact of the Case:
The petitioner, a principal employer, engaged a licensed contractor to undertake certain jobs. The contractor's workmen claimed wages similar to the principal employer's regular workmen under Rule 25 (2) (v) (a) of the Rules, 1975.
Finding of the Court:
The court found that the obligation under Rule 25 (2) (v) (a) of the Rules, 1975 is limited to the contractor and does not impose liability on the principal employer. The burden of proof cannot be shifted to the principal employer, and the disputed claims between the contractor and its workmen are not within the scope of Section 21 of the Act, 1970.
Issues: The issues revolved around the interpretation of Rule 25 (2) (v) (a) of the Rules, 1975, the burden of proof regarding work similarity, and the extent of the principal employer's liability under Section 21 of the Act, 1970.
Ratio Decidendi: The court held that Rule 25 (2) (v) (a) of the Rules, 1975 only deals with the terms of the contractor's license and does not impose liability on the principal employer. The burden of proof cannot be shifted to the principal employer, and the obligation under Section 21 of the Act, 1970 is confined to contracted wages.
Final Decision: The impugned order was quashed, and the writ petition was allowed with no order as to costs.
( 2 ) BY the impugned order dated January 7, 1994 passed in case No. 32 of 1990 (Annexure 8 to the writ petition), the authority has given to the two respondent workmen who where contractors workmen, wages which were to be given to the casual employees of the principal employer the petitioner.
( 3 ) THE facts of the case are that the petitioner Chand Chhap Fertilizer and chemicals Limited, later known as ICI Limited and now known as Duncans Industries Ltd. , was the principal employer. In order to undertake certain jobs in the industry, the principal employer had engaged one contractor by the name of Saran Engineering Works, who was duly licensed contractor under the provisions of Section 7 of the Contract Labour (Regulation and Abolition) Act, 1970 (hereinafter referred to as the Act, 1970 ).
( 4 ) THE respondent No. 3 and 4 moved an application under Rule 25 (2) (v) (a) of the Rules, 1975 to the authority claiming that they were not being given wages as that of the other workmen employed by the principal employer and the wages should be paid to them same and similar to the other workmen of the principal employer.
( 5 ) I have heard learned counsel for the parties. In order to appreciate the facts of the case, it is necessary to quote Rule 25 (2) (v) (a)of the Rules, 1975 as hereunder:" (v) (a) in cases where the workmen employed by the contractor perform the same and similar kind of work as the workmen directly employed by the principal employer of the establishment, the wages rates, holidays, hours of work and other conditions of service of the workmen of the contractor shall be the same as applicable to the workmen directly employed by the principal employer of the establishment on the same or similar kind of work; provided that in the case of any disagreement with regard to the type of work the same shall be decided by the labour Commissioner, U. P. , whose decision shall be final. "
( 6 ) THE aforesaid rule has been made in respect of conditions of licence; which is granted to contractor the violation of above rules can only result in the suspension or cancellation of the licence so granted to a contractor but does not impose any burden or obligation on the principal employer. The scope of the Rule does not extend to impose butden on the principal employer and casts no obligation on the principal employer. The obligation cast upon the principal employer is under the provisions of Section 21 of the Act, 1970, which is limited to the wages as agreed between the contractor and the workmen. Section 21 of the Act, 1970 is quoted hereunder: "27. Responsibility for payment of wages.- (1) A contractor shall be responsible for payment of wages to each worker employed by him as contract labout and such wages shall be paid before the expiry of such period as may be prescribed. (2) Every principal employer shall nominate a representative duly authorized by him to be present at the time of disbursement of wages by the contractor and it shall be the duty of such representative to certify the amounts paid as wages in such manner as may be prescribed. (3) It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorized representative of the principal employer. (4) In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then the principal employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor. "
( 7 ) THE question as to whether the work that was being performed by the contractors workmen are