The main contractor is liable to obtain a labor license for all workforces, including those of sub-contractors, under the Contract Labour Act if the total number exceeds 20 workers.

JUDGMENT :

SHAMPA DUTT (PAUL), J.

1. The writ petition has been preferred praying for direction upon the respondent nos. 3 and 4 authorities to revoke and withdraw the communication dated 10^th February, 2022 and 16^th March, 2022 and further directions to issue licence to such sub-contractors engaged by the petitioner, who employ or will employ 20 or more workmen/contract labour in the premises of the establishment in relation to Steel Authority of India Limited, Durgapur Steel Plant and permit Durgapur Steel Plant to engage contract labour of such contractors/sub-contractors.

2. The petitioner's case is that the petitioner company entered into a contract with Steel Authority of India Limited (hereinafter referred to as “SAIL”) for work of installation of 4^th Stove of Blast Furnace No. 04 at the Durgapur Steel Plant. The contract expressly permits the petitioner to engage sub-contractors with the knowledge and consent of the respondent no. 4. The nature of work entails several types of civil work, mechanical, erection and electrical work. The petitioner company being an engineering consultancy establishment can only supervise such work which will be actually carried out by the sub-contractors engaged at the establishment of SAIL.

3. Thus the petitioner in turn had awarded contract to other contractors for execution of the project and such sub-contractors may be employing 20 or more workmen, or some of them may employ even less than 20 workmen.

4. The petitioner company as a contractor has not employed even a single workman in the establishment of SAIL at Durgapur Steel Plant. Therefore, it is stated that the petitioner company, even though a contractor in relation to the establishment of SAIL, is not entitled and does not qualify to obtain a licence under Section 12 of the Contract Labour (Regulation and Abolition) Act, 1970 (hereinafter referred to as “the said Act of 1970”).

5. Petitioner further states that the respondent no. 4 has forwarded to the petitioner a copy of a letter dated 10^th February, 2022 issued by the respondent no. 3 to the respondent no. 4 wherefrom, it appears that the respondent no. 3 had informed the respondent no. 4 that the petitioner herein should obtain labour licence covering the manpower of all sub-contractors and the sub-contractor should also obtain labour licence accordingly.

6. The petitioner had made representation to the respondent no. 4 on 19^th February, 2022 in respect of the aforesaid letter dated 10^th February, 2022 enclosing copies of clarification issued by the Ministry of Steel and Mines on 22nd July, 1983, whereby it was specifically clarified that the petitioner was not required to be registered as contractor under the said Act of 1970. The respondent No. 4 has responded to such letter dated 19^th February, 2022 by an email dated 25.02.2022.

7. The petitioner had made another communication dated 10^th March, 2022 to the respondent no. 4 clarifying the issue.

8. On 16th March, 2022, the respondent no. 2 had issued a communication to the petitioner rejecting the contention of the petitioner and purportedly clarifying that unless the main contractor is license