IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
DILIP B. BHOSALE, ACJ., S.V. BHATT, J.
M/s.Vishwa Infrastructure And Services P. Ltd. - Appellant
Vs.
The State of Andhra Pradesh - Respondent
W.A.Nos.1012, 1013, 1019, 1020, 1021, 1023, 1032, 1033, 1034, 1035, 1040, 1099, 1131, 1137, 1174, 1199, 1216, 1262, 1448, 1464, 1470, 1485 OF 2013, 1383, 1447, 1638, 1640 and WA (SR) Nos.165064, 16940, 16948, 16954, 16958, 16967, 16968, 16971, 16980, 16981, 17002, 17003, 29440 of 2014, W.A.Nos.58, 59, 60, 61, 62, 71, 78, 94, 123, 124, 125, 135, 150, 188, 190, 256, 282, 294, 445, 469 and WA (SR) Nos.10221, 12180 14663 of 2015 AND W.P.Nos.28885 of 2009, 1596, 2901, 3959 and 9328 of 2010, 7349 and 7550 of 2013, 27460, 27935 and 29465 of 2014 and 13318 and 13460 of 2015
Decided On : 06-08-2015
Advocate Appeared :
For the Appellant : P Vinayaka Swamy
For the Respondent : GP For IRRI And Comm Area Devtg
| Table of Content |
|---|
| 1. writ appeals against commissioner orders. (Para 1 , 2 , 3) |
| 2. nature of contracts for construction work. (Para 4 , 5) |
| 3. arguments regarding applicability of acts. (Para 7 , 8 , 9) |
| 4. interpretation of 'worker' under the acts. (Para 10 , 11 , 12 , 13) |
| 5. definition of 'building' in legal context. (Para 14 , 15 , 16) |
| 6. impact of interpretation on construction workers. (Para 17 , 18 , 19) |
| 7. legislative intent regarding welfare of workers. (Para 20 , 21 , 22) |
| 8. court’s decision on construction worker eligibility. (Para 23 , 24 , 25) |
| 9. contracts and public policy implications. (Para 26 , 27 , 28 , 29) |
| 10. final ruling on applicability of acts. (Para 30) |
JUDGMENT :
Dilip B. Bhosale, ACJ.
These writ appeals, under Clause 15 of the Letter Patent, are directed against the order dated 28.11.2013 disposing of a batch of writ petitions whereby the question “whether the works executed by the petitioners in the 3rd respondent-factory (in W.P.No.9111 of 2010) are the works incidental to and/or connected with the works of the 3rd respondent-factory and thus exempted from the provisions of The Building and Other Construction Workers’ (Regulation of Employment and Conditions of Service) Act, 1996 (27 of 1996) (for short “Act No.27”)” has been answered in the affirmative.
2. All writ appeals are preferred either by the Commissioner of Labour or Joint Commissioner of Labour, who were respondent No.1 or 2 in the writ petitions (for short “the Commissioner”). The writ petitions were filed by Infrastructural Development Companies/Contractors (for short “the contractors”) who were given contracts for erection or raising structures/constructions such as blast furnace within the campus of respondents-companies/corporations (for short “the Companies”).
3. The writ petitions were filed by the contractors basically challenging orders of the Commissioner, charging 1% (as cess) of the value of the contracts, executed between them and companies for designing, manufacturing, supplying, erecting, testing and commissioning of blast furnace, under The Building and Other Construction Workers’ Welfare Cess Act , 1996, (28 of 1996) (for short “Act No.28”).
3. Since the questions raised are common, W.P.Nos.28885 of 2009, 1596, 2901, 3959 and 9328 of 2010, 7349 and 7550 of 2013, 27460, 27935 and 29465 of 2014 and 13318 and 13460 of 2015 are also tagged with the Writ Appeals and by consent heard along with the Appeals.
4. Mr.C.R.Sridharan, the learned Senior Counsel appearing for the contractors in this batch of writ appeals/petitions, at the outset, submitted that though question “whether the structures raised or constructions made by the contractors, such as blast furnace, within the premises of factories of the companies are covered by the definition of ‘building or other construction work’?”, was raised, was not addressed by learned single Judge while disposing of the batch of writ petitions, perhaps, in view of the fact the principal question was answered in favour of the contractors. He submitted that this question also needs to be considered and decided in these appeals. The learned Advocate General appearing for the Commissioner did not oppose the submission of Mr.C.R.Sridharan. We, therefore, propose to consider and address both the questions in these appeals. Insofar as the first question is concerned, we reformulate the same as follows: Whether the Factories Act, 1948 (63 of 1948) would apply to the buildings, such as blast furnace within the premises of factories, constructed/erected by contractors? and if yes whether they are liable to pay 1% cess, being ‘employers’ under the provisions of Act No.28? In other words whether structures, such as blast furnace within the factory premises, are exempted from the provisions of Act No.27, that being the works incidental to and/or connected with the works of factory?
5. The factual matrix and questions raised in these appeals are similar. It is not in dispute that the contractors were not only required to d
The court established that construction works like blast furnaces fall under 'building or other construction work' as defined in labor laws, ensuring their obligations for labor welfare remain intact....
The imposition of 1% cess under the Building and Other Construction Workers Act is a statutory obligation aimed at benefiting workers, and is applicable despite claims regarding the Factories Act exe....
(1) Cess could only be recovered in the manner stipulated in Cess Act and Rules framed thereunder.(2) A contractor who enters into a pure Supply Contract is statutorily exempted from levy under BOCW ....
The main legal point established in the judgment is the importance of interpreting the statute by considering the text and context, and the applicability of the enabling provision of section 3(1-A) a....
The court held that deductions for the cess on construction payments are valid under the relevant welfare legislation, affirming that activities like laying pipelines constitute construction work.
The Appellate Tribunal rightly limited Provident Fund coverage to canteen employees, confirming that casual and contract workers lack a defined employment connection under the Employees Provident Fun....
Grant of bail – Dowry death – Courts are duty bound to undertake deeper scrutiny of circumstances under which bail is granted in these case – Superficial application of bail parameters not only under....
Dredging activities fall within the definition of construction work under the BOCW Act, affirming cess obligations for such activities.
The interpretation of the Building and Other Construction Workers Act and the Cess Act requires the establishment of welfare boards for the effective levy and collection of cess; until then, contract....
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