HINDUSTAN STEELWORKS CONSTRUCTION LTD. versus THE COMMISSIONER OF LABOUR AND ORS.

HINDUSTAN STEELWORKS CONSTRUCTION LTD. versus THE COMMISSIONER OF LABOUR AND ORS.

Principal employer is only liable under Section 21(4) to pay contract labourers the difference between the contractual wage agreed with the contractor and the lesser wage actually paid by the contractor in case of default; Section 21(4) does not cover additional amounts payable as per Rule 25(v)(a) of the Andhra Pradesh Contract Labour Rules, which is solely a contractor's obligation.

Parties
Appellant: Hindustan Steelworks Construction Ltd.; Respondents: The Commissioner of Labour and others
Jurisdiction
India
Judgment Date
03 September 1996
Procedural Posture
Civil Appeal / Supreme Court Final Judgment
Outcome
Appeal allowed in part. Division Bench directions requiring principal employer to pay additional wages under Rule 25(v)(a) set aside.
Legal Topics
Contract Labour, Payment of Wages, Principal Employer Liability, Contractor Obligations, Andhra Pradesh Contract Labour Rules
Labour Law Contract Labour Payment of Wages Principal Employer Liability Contractor Obligations Andhra Pradesh Contract Labour Rules

Case Brief

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Parties

Hindustan Steelworks Construction Ltd.

Appellant

The Commissioner of Labour and others

Respondents

Procedural Posture

Civil Appeal / Supreme Court Final Judgment

Legal Issues

  1. 1 Whether the principal employer is liable to pay contract workers the difference between wages paid by contractor and those paid by principal employer to own employees doing similar work under Section 21(4) of the Contract Labour (Regulation and Abolition) Act, 1970.
  2. 2 Whether additional amounts payable under Rule 25(v)(a) of the Andhra Pradesh Contract Labour (Regulation and Abolition) Rules, 1971 fall within the definition of 'wages' under the Act.

Ratio Decidendi

Principal employer is only liable under Section 21(4) to pay contract labourers the difference between the contractual wage agreed with the contractor and the lesser wage actually paid by the contractor in case of default; Section 21(4) does not cover additional amounts payable as per Rule 25(v)(a) of the Andhra Pradesh Contract Labour Rules, which is solely a contractor's obligation.

Court Disposition

Appeal allowed in part. Division Bench directions requiring principal employer to pay additional wages under Rule 25(v)(a) set aside.

Orders

  • Principal employer liable only for difference between contractual wage and lesser wage actually paid by contractor, recoverable from contractor.
  • Directions requiring payment of additional wages under Rule 25(v)(a) of Andhra Pradesh Contract Labour Rules set aside.