IN THE SUPREME COURT OF INDIA

CIVIL ORIGINAL JURISDICTION

INTERLOCUTORY APPLICATION NO.6

IN

WRIT PETITION (CIVIL) NO.318 OF 2006

National Campaign Committee for Central Legislation on Construction Labour … Petitioner

Versus

Union of India & Ors. … Respondents

WITH

Contempt Petition (C) Nos.41/2011 in WP (C) No.318/2006

Contempt Petition (C) Nos.42/2011 in WP (C) No.318/2006

Contempt Petition (C) Nos.43/2011 in WP (C) No.318/2006

Contempt Petition (C) Nos.44/2011 in WP (C) No.318/2006

O R D E R

This  order  is  in continuation to  the  all  the  previous orders  

passed  by  this  Court,  more  particularly,  the  orders  dated  18th  

January,  2011,  15th March,  2011,  25th April,  2011  and  28th  

November, 2011.   Vide Order dated 15th March, 2011, this Court -

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dealt  with  Contempt  Petition  Nos.41  –  44  of  2011  filed  by  the  

petitioner and passed certain directions including that the Labour  

Secretary of the concerned States should be present in the Court on  

the next date of hearing.   Thereafter, vide Order dated 25th April,  

2011,  the  States  of  Nagaland,  Rajasthan,  Meghalaya,  Uttar  

Pradesh, Maharashtra, Goa and Uttarakhand, Union Territories of  

Lakshadweep and Chandigarh and Union of India were required to  

comply  with  certain  directions  as  well  as  to  file  affidavits  of  

compliance.

The petitioner in Contempt Petition Nos. 41 – 44 of 2011 had  

contended  that  most  of  the  states  have  not  complied  with  the  

directions issued by this Court.   They had failed to discharge their  

statutory  duties  under  the  provisions  of  the  Building  &  Other  

Construction Worker (Regulations of Employment & Conditions of  

Service) Act, 1996 (for short, ‘the Act’) and the Building and Other  

Construction Workers Welfare Cess Act, 1996 (for short ‘the Cess  

Act’), thus, they should be punished for violating the orders of this  

Court.    However,  after passing of the above orders, most of the  

states have filed affidavits, showing status of compliance with the  

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directions  issued  by  this  Court  as  well  as  performance  of  their  

statutory duties.

In view of the persistent defaults and unacceptable conduct of  

the officers of the concerned states, we passed the following order  

on 28th November, 2011:-

“Since almost every State is in contempt, we  have no option but to take further steps in the  matter.   However, in order to give opportunity  to the States, the matter is being adjourned to  the last  week of  December,  2011,  to  enable  each defaulting  State  to  file  it's  reply  as  to  why contempt  action  should  not  be  taken  against the concerned officers.”

Still,  a few States have neither filed affidavits nor have they  

placed on record any documentation to demonstrate that they have  

fully complied with the directions of this Court and have completely  

discharged their statutory obligations under the provisions of the  

Act.   Keeping in view the fact that, despite our order dated 28th  

November, 2011, these states have failed to show obedience to the  

orders of this Court, the matter was again placed before this Court  

on  16th December,  2011,  on  which  date  we  had  reserved  the  

contempt petitions for orders.    

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Category – I -  

Under Category-I, we will be dealing with the States of Andhra  

Pradesh, Chhattisgarh, Punjab and Tamil Nadu.  All these states  

had  filed  their  respective  affidavits  in  the  years  2010  and 2009  

respectively.   Thereafter, they have not even cared to file further  

affidavits as directed by the orders of this Court.  Though, all the  

above  States  have  constituted  Welfare  Boards,  have  registered  

workers and establishments in accordance with the provisions of  

the  Act,  notified  the  prescribed  authorities  for  collection  and  

disbursement of cess under the Cess Act and have collected some  

cess, however, they have not collected the required quantum of cess  

and  have  also  not  distributed  the  amount  to  the  registered  

applicants in furtherance to implementation of the scheme framed.  

The petitioner has also placed on record material to show that these  

states are defaulting in this regard.    Before we take any action  

against  the  officers  responsible  for  enforcing  the  schemes  and  

proper collection and disbursement of cess, we would grant a last  

and final opportunity to these states to file affidavits of compliance  

within four weeks from today, subject to payment of Rs.10,000/-  

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each, as costs.   The cost shall be payable to the Supreme Court  

Legal Services Committee.

Category – II

Under Category-II, we would pass directions in relation to the  

states which have constituted Welfare Boards, notified the statutory  

authorities responsible and have even collected the cess, however,  

they  have  not  disbursed  the  cess  amounts  to  the  registered  

applicants for the reason that the competent authority in the State  

Government has not approved the welfare schemes or the welfare  

fund has  not  been constituted.    Another  reason for  such non-

disbursal of cess amount is that no applicants have approached the  

Welfare Board/notified authority, for payment under the provisions  

of the Act and the Cess Act.

The  States  of  Andhra  Pradesh,  Arunachal  Pradesh,  Goa,  

Jammu  and  Kashmir,  Meghalaya,  Maharashtra,  Mizoram,  

Nagaland, Punjab, Sikkim and Tamil Nadu and Union Territories of  

Andaman and Nicobar, Dadra and Nagar Haveli, Daman and Diu  

and Lakshadweep fall under this category.

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Having perused the affidavits of these states/union territories  

and the records before us, we issue the following directions:-

a)  The  governments  of  the  above-referred  states/union  

territories are hereby directed to ensure that the welfare  

fund is created and welfare schemes are formulated and  

notified in accordance with the provisions of the Act and  

the Cess Act within four weeks from today.

b) The  welfare  schemes  framed  by  the  respective  

states/union territories shall be given due publicity and  

be brought to the notice of the concerned workmen and  

eligible  applicants  by  the  District  Authority/Sub-

Committee responsible.   We may clarify that there are  

certain  schemes  where  the  workmen  are  entitled  to  

disbursement  of  the  amounts  across-the-board,  like  

education schemes, etc.   Every effort should be made to  

implement these schemes without any further delay.

c) Affidavit  shall  be filed by the Secretary (Labour)  of  the  

respective states/union territories within six weeks from  

today  reporting  to  this  Court  the  complete  compliance  

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with these directions.   The affidavit shall also give the  

up-to-date  status -

d) of  collection  of  cess,  disbursement  of  amounts  and  

implementation of schemes.

Category-III

The States of Kerala, Punjab, Nagaland and Himachal Pradesh  

and  the  Union  Territory  of  Lakshadweep  are  the  states/union  

territory which have not given any details of the schemes framed,  

reasons  for  its  non-implementation  and  consequent  non-

disbursement  of  the cess amounts.    It  is  a statutory obligation  

upon these states/union territory and the authorities in-charge of  

the concerned departments that they ensure implementation of the  

schemes  and disbursement  of  the  cess  amounts.    Let  now the  

schemes  be  publicized  and  cess  amounts  be  disbursed  to  the  

eligible applicants in accordance with the provisions of the Act and  

the Cess Act within a period of six weeks from today and affidavit of  

compliance of the Secretary (Labour) of the states/union territory  

be filed within two weeks thereafter.

General Directions

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It  is  clear from the  affidavits  filed on behalf  of  most of  the  

states and union territories that they are not holding meetings of  

the Welfare Board as required, i.e., at least once in two months, to  

discharge their  statutory  functions.   Further,  it  is  also apparent  

that audit by the Comptroller and Auditor General (CAG) has not  

been conducted of the funds placed at the disposal of the concerned  

authority.  We may also notice that large funds are lying with the  

said Welfare Boards/authorities, but have not been disbursed.   The  

possibility of these amounts being diverted by the state authority  

for  other  heads  of  expenditure  in  the  respective  states/union  

territories cannot be ruled out.

Resultantly, while reiterating our earlier orders, we also issue  

the following directions for their immediate compliance:

a)  All the State Welfare Boards shall be subjected to audit  

by the CAG within two months from today. All the States,  

Union  Territories  and  the  State  Boards  to  initiate  the  

process and ensure its completion under the provisions  

of Section 27 of the Act.  

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b) Every Welfare Board shall, without fail, hold its meetings  

at least once in two months and submit its Minutes, as  

well as the action taken and progress reports in regard to  

the  framing  and  implementation  of  the  schemes  and  

disbursement of funds to the eligible applicants, to the  

Secretary (Labour) of that Government quarterly.

c) The funds available with the Welfare Boards which have  

not  been  disbursed  or  are  not  likely  to  be  disbursed  

within a short period should be properly invested with  

the nationalized banks only.   Funds available with the  

Welfare Boards shall not be utilized by the State for any  

other head of expenditure of the State Government, etc.

d) Union of India has filed an affidavit.  It is stated in the  

affidavit  that  they  have  taken  various  steps,  including  

steps for  amendment of  the Act  and the Rules framed  

thereunder.  Union of India is directed to expedite this  

process.  We also direct the Union of India to discharge  

its  various  statutory  functions  under  the  Act  with  

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particular reference to Sections 24 to 27.  It shall also  

issue appropriate directions under Section 60 of the Act  

to  all  the  State  Governments  to  fully  implement  the  

provisions of the Act as well as the Cess Act.

The above directions should be complied with by all concerned  

without fail and within the time afore-stipulated.  We make it clear  

that  in  the  event  of  any  default  committed  by  any  

officer/official/authority, we will be compelled to take action against  

the officer/official/authority concerned under the provisions of the  

Contempt of Courts Act, 1971 without any further notice.

With  these  directions,  we  dispose  of  these  four  contempt  

petitions & I.A.6, but make it clear that in the event of default, the  

petitioner would be at liberty to file fresh contempt petitions before  

this Court, in view of the above order.  

Let a copy of this order be sent to each Chief Secretary and  

Secretary (Labour) of the respective states or union territories.  

….………….................CJI.                    (S.H. Kapadia)

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…….…………................J.              (A.K. Patnaik)

...….…………................J.     (Swatanter Kumar)

New Delhi; February 7, 2012

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