Labour Law-2 Assignment

Bonded Labour System

Introduction
As England was the first country to industrialise, it was also the first to face the often appalling
consequences of capitalist exploitation in a totally unregulated and laissez-faire economic
framework. Over the course of the late 18th and early to mid-19th century the foundation for
modern labour law was slowly laid, as some of the more egregious aspects of working conditions
were steadily ameliorated through legislation. This was largely achieved through the concerted
pressure from social reformers, notably Anthony Ashley-Cooper, 7th Earl of Shaftesbury, and
others.

The system of bonded labour is an outcome of

certain categories of indebtedness which have been prevailing for a long time involving certain
economically, exploited, helpless and weaker sections of the society. The bonded or forced
labour system was known by different names in different parts of the country like Begar, Sagri or
Hali, Jeetham etc. This practice has not been completely eradicated from the Indian society till
date.

History
The phenomenon of bonded labour is a vicious circle where each factor is responsible for further
subjugation and apathy of the bonded labourers. The system of bonded labour is an outcome of
certain categories of indebtedness which have been prevailing for a long time involving certain
economically, exploited, helpless and weaker sections of the society. The bonded or forced
labour system was known by different names in different parts of the country like Begar, Sagri or
Hali, Jeetham etc. Various forms of slavery existed in the Indian society before its independence.
It was first legislatively abolished by the British Empire in 1843, through Act No.V of 1843 also
known as the Indian Slavery Act, 1843. However, this practice has not been completely
eradicated from the Indian society till date. One of the most common forms of slavery which is still
prevalent in the Indian society is bonded Labour. Even after the independence, there have been
several legislations passed in India which abolishes bonded labour. The issue of ‘bonded labour’
came to the forefront as a national issue when it was included in the old 20-Point Programme in
1975.

Meaning & Definition

“Advance” means an advance, whether in cash or in kind or partly in cash or partly in kind,
made by one person (the creditor) to another person the debtor) “Agreement” means
a. an agreement (whether written or oral or partly written and partly oral)
b. between a debtor and creditor, and
c. includes an agreement providing for forced labour, the existence of which is presumed
under any social custom prevailing in the concerned locality.
Explanation. —The existence of an agreement between the debtor and creditor is ordinarily
presumed, under the social custom, in relation to the systems mentioned under the Act. “Bonded
debt” means an advance obtained or presumed to have been obtained, by a bonded
labourer under, or in pursuance of, the bonded labour system;
“Bonded labour” means any labour or service rendered under the bonded labour system;
“Bonded labourer” means a labourer who incurs, or has, or is presumed to have, incurred, a
bonded debt;
“Bonded labour system” means the system of forced, or partly forced, labour under which a
debtor enters, or has, or is presumed to have, entered, into an agreement with the creditor to the
effect that, —
1. in consideration of an advance obtained by him or by any of his lineal ascendants or
descendants and in consideration of the interest, if any, due on such advance, or
2. in pursuance of any customary or social obligation, or
3. in pursuance of an obligation devolving on him by succession, or
4. for any economic consideration received by him or by any of his lineal ascendants or
descendants, or
5. by reason of his birth in any caste or community,
He would—
1. render, by himself or through any member of his family, or any person dependent on
him, labour, or service to the creditor, or for the benefit of the creditor, for a specified
period or for an unspecified period, either without wages or for nominal wages, or
2. forfeit the freedom of employment or other means of livelihood for a specified period or
for an unspecified period, or
3. forfeit the right to move freely throughout the territory of India, or
4. forfeit the right to appropriate or sell at market value any of his property or product of his
labour or the labour of a member of his family or any person dependent on him,
and includes the system of forced, or partly forced, labour under which a surety for a debtor
enters, or has, or is presumed to have, entered, into an agreement with the creditor to the effect
that in the event of the failure of the debtor to repay the debt, he would render the bonded labour
on behalf of the debtor.

Bonded labour has been defined as well as addressed as a prohibited practice in several
international conventions as well as a many Indian legislations. It is a system of forced (or partly
forced) labour in which a debtor enters (or presumed to have entered) into an agreement with the
creditor. Owing to this agreement, following are the end results:
1. Render services to the creditor (by himself or through a family member) for a specified
(or unspecified) period with no wages (or nominal wages).
2. Forfeit the right to move freely.
3. Forfeit the right to appropriate or sell the product or property at the market value from
his (or his family members’) labour or service.
This definition has been provided in the Bonded Labour System (Abolition) Act 1976.
The said agreement of bonded labour results into an undeniable loss of freedom on part of the
debtor. However, the scope of ‘loss of freedom’, as used above has not been defined.
The National Human Rights Commission has elucidated on the scope in the following manner:
 Loss of freedom of employment or alternative avenues of employment to sustain a
decent livelihood.
 Loss of freedom to earn the minimum wage as notified by the Government of India.
 Loss of freedom to move from one part of the country to another.
In simple words, the system of bonded labour refers to a system wherein a creditor and a debtor
enter into an agreement of rendering services of the debtor as a mode of repayment of the said
amount. This agreement may lapse with time or may continue for an uncertain period.

As per Article 23 of the Indian Constitution, traffic in human beings and other forms of forced
labour are prohibited. Based on this constitutional provision, the Government of India passed The
Bonded Labour System (Abolition) Act, 1976. In this context, the Supreme Court of
India deliberated in the following words – “We are, therefore, of the view that when a person
provides labour of service to another for remuneration which is less than the minimum wage, the
labour or service provided by him clearly falls within the scope and ambit of the words “forced
labour” under Article 23.”

Aims and objectives of the Act

The Bonded labour system abolition act 1976 has been passed to provide for the abolition of
bonded labour system with a view to preventing the economic and physical exploitation of the
weaker sections of the people and for matters connected therewith for incidental thereto. It was
stated in the objects and reasons of the Act that there still exists in different parts of the country a
system of usury under which the debtor or his descendants or dependents must work for the
creditor without reasonable wages or with no wages in order to extinguish the debt. At times
several generations work under bondage for the repayment of a paltry sum which has been taken
by some remote ancestor.
The interest rates Aur exorbitant and such bondage cannot be interpreted as the result of any
legitimate contract or agreement. The system implies the infringement of the basic human rights
and destruction of the dignity of human labour.
Bonded Labour System under the Indian Constitution
Bonded Labour under Indian Constitution. The Constitution of India guarantees all its citizens-
justice, social, economic, and political; freedom of thought, expression, belief, faith, and worship;
equity of status and opportunity and fraternity, the dignity of individual and unity of the Nation.
1. Article 21 of the Indian Constitution – This is the most important and foremost
safeguard against any exploitation of human lives and their liberty. It is part of the Basic
Structure of the Constitution and cannot be amended. It secures the right to life and
right to live with human dignity to every person in India. So, any practice of bonded
labour would be in contravention of this Constitutional provision since bonded labour
deprives a person of numerous liberties.
2. Article 23 of the Indian Constitution – Under Article 23, Prohibition of traffic in
human beings and forced labour - Traffic in human beings and begar and other similar
forms of forced labour are prohibited and any contravention of this provision shall be an
offence punishable in accordance with law. Article 35 (a) (ii) of the constitution not only
confers the power on Parliament to provide for punishment for contravention of the said
provisions. Article 23 (1) expressly takes away the power of the state legislature to
make any registration regarding bonded labour. Accordingly, the bonded labour System
Abolition ordinance 1975 was promulgated by the president in 1975. By the said
ordinance the bonded labour system was abolished and the bonded labourers were
freed and discharged from any obligation to render any bonded labour and their bonded
debt were also extinguished.
People's Union of Democratic Rights V. Union of India
The court held that, "The Union of India, the Delhi Administration and the Delhi
Development Authority cannot escape their obligation to the workmen to ensure
observance of the provisions of various labour law by its contractors and for non-
compliance with the laws by the contractors, the workmen would clearly have a cause
of actions against them as principal employers."
The Hon'ble Supreme Court of India dealt with the expression "other similar form of
forced bonded labour" envisaged in Article 23 of The Constitution of India. The court
gave the expression a wide interpretation to meet the objectives of Article 23. The court
held that a person who has been forced to work as a bonded labour and a person who
is forced to work at a rate lesser than the minimum wage due to his economic
compulsion shall be dealt equally.
3. Article 39 of the Constitution – This is covered in Part IV of the Indian Constitution
which deals with the Directive Principles of State Policy although not enforceable but
are considered undisputable for the purpose of governance. This constitutional
provision directs the State to secure the right to an adequate livelihood. It also directs
the state to formulate its policies with an object that no citizen is forced out of economic
necessity to enter avocations which are not suited to them.
4. Article 42 of the Constitution – This is also a Directive Principle of State Policy which
states “The State shall make provision for securing just and humane conditions of
work…” This means that the state must ensure that every person has a working
condition which are just and humane for them. However, since it is part of Part IV, it
cannot be enforced.
5. Article 43 of the Constitution – This directive directs the State to secure i.e. –
conditions for work ensuring a decent standard of life.
Supreme Court in Public Union for Civil liberties V. state of Tamil Nadu, the
question
regarding rehabilitation of bonded labour. Going through the reports of the National
Human Rights Commission and expert group, the supreme court pointed out that the
major issue regarding bonded labour was their rehabilitation. Therefore, the court
issued directions to the state governments and union territories towards achieving such
rehabilitation.
Main Features of the Act
1. The Act prohibits bonded labour system.
2. The Act provides that if there is any agreement or instrument for the custom which.
requires such bonded labour, it shall stand inoperative after the commencement of the act.
3. Any liability to repay bonded debt shall stand extinguished.
4. The property of the bonded labour shall stand freed and discharged from mortgage,
charge, lien, or other encumbrances and shall be restored to the possession of the bonded
labour.
5. For the compliance of the provisions of the act, it makes provision for the constitution of
vigilance committee in each district and each Sub District.
This Act is a social welfare legislation providing for socio-economic justice to the weaker
section of the society.
Sannasomannavara Somashekarappa V. Gorappa Rudraswamy
Mr somashekarappa approached the parents of four children and paid some advance, in
return the children had to render service (grazing cattle) for a period of one year. Food and
clothing was provided to the children. Later the children were afraid and admitted to a school.
a case was registered under the bonded labour abolition act. The court observed that
1. there was no creditor-debtor relationship between the parents at the employer
2. It was child labour not bonded labour system
3. Parents of the children were not compelled obliged to send children
4. The requirement of section 2 (g) was not fulfilled.

Laws in India
Apart from the above-mentioned constitutional provisions and safeguards, there are also a few
legislations which deal with the subject at hand. However, the major law governing the practice of
bonded labour is The Bonded Labour System (Abolition) Act 1976. In addition to this, there are a
few more legislations in consonance with this major law in India such as Contract Labour
(Regulation and Abolition) Act 1970, Minimum Wages Act 1948, and the Inter-State Migrant
Workmen (Regulation of Employment and Conditions of Service) Act, 1979 and even the Indian
Penal Code 1860.
 The Indian Penal Code recognizes the offence of unlawful compulsory labour and
imposes a punishment of imprisonment for a term extendable to 1 year or with a fine or
both.
 The Minimum Wages Act 1948 sets the minimum wage for certain enumerated
occupations and requires that overtime be paid to whoever working beyond the ‘normal
working day.’
 Similarly, the Bonded Labour System (Abolition) Act 1976 prescribes imprisonment for a
term up to 3 years as well as a fine up to Rs. 2000/-. This punishment is for whoever
compelling a person to render their service under bonded labour and whoever
advancing the bonded debt. Every offence under the Act is cognizable and bailable.
Consequence after The Act of 1976
1. All the bonded labourers are freed and discharged from all the obligations to render their
bonded labour.
2. All the customs, traditions, contracts, agreements, or any instruments by virtue of which a
person (or any member of the family) is required to render bonded labour to someone will
now be deemed as void.
3. Every obligation of a bonded labourer to repay any bonded debt shall be deemed to be
extinguished.
4. All the decrees for recovery of bonded labour debt which was not fully satisfied shall be
deemed as fully satisfied after the commencement of the Act.
5. Every property of a bonded labourer which was removed from his possession or forcible
taken from him, shall be restored to him.
6. Every bonded labourer who has been detained in Civil Prison shall be released.
 7. Freed bonded labourers shall not be evicted from their homestead.
8. After the commencement of this Act, no person shall—
(a) make any advance under, or in pursuance of, the bonded labour system, or
(b) compel any person to render any bonded labour or other forms of forced
labour.
EXTINGUISHMENT OF LIABILITY TO REPAY BONDED DEBT
All bonded debts are deemed to be extinguished -
1. On the commencement of this Act, every obligation of a bonded labourer to repay any
bonded debt, or such part of any bonded debt as remains unsatisfied immediately before
such commencement, shall be deemed to have been extinguished.
No suit shall be filed for recovery of bonded debt -
2. After the commencement of this Act, no suit or other proceeding shall lie in any civil
court or before any other authority for the recovery of any bonded debt or any part
thereof.
Decree or order deemed to be fully satisfied -
3. Every decree or order for the recovery of bonded debt, passed before the commencement
of this Act and not fully satisfied before such commencement, shall be deemed, to have
been fully satisfied.
Attachment and recovery stand vacated -
4. Every attachment made before the commencement of this Act, for the recovery of any
bonded debt, shall, on such commencement, stand vacated; and, where, in pursuance of
such attachment, any movable property of the bonded labourer was seized and removed
from his custody and kept in the custody of any court or other authority pending sale
thereof, such movable property shall be restored, as soon as may be practicable after such
commencement, to the possession of the bonded labourer.
Property should be restored -
5. Where, before the commencement of this Act, possession of any property belonging to a
bonded labourer or a member of his family or other dependant was forcibly taken over by
any creditor for the recovery of any bonded debt, such property shall be restored, as soon
as may be practicable after such commencement, to the possession of the person from
whom it was seized.
Application if the property is not restored -
6. If restoration of the possession of any property is not made within thirty days from the
commencement of this Act, the aggrieved person may, within such time as may be
prescribed, apply to the prescribed authority for the restoration of the possession of such
property and the prescribed authority may, after giving the creditor a reasonable
opportunity of being heard, direct the creditor to restore to the applicant the possession of
the concerned property within such time.
7. An order made by any prescribed authority, under sub-section (6), shall be deemed to be
an order made by a civil court and may be executed by the court of the lowest pecuniary
jurisdiction within the local limits of whose jurisdiction the creditor voluntarily
resides or carries on business or personally works for gain.
Sale of the attached property before the Act will not get affected -
8. For the avoidance of doubts, it is hereby declared that, where any attached property was
sold before the commencement of this Act, in execution of a decree or order for the
recovery of a bonded debt, such sale shall not be affected by any provision of this Act:
Provided that the bonded labourer, or an agent authorised by him in this behalf, may, at any time
within five years from such commencement, apply to have the sale set aside on his depositing in
court, for payment to the decree-holder, the amount specified in the proclamation of sale, for the
recovery of which the sale was ordered, less any amount, as well as mesne profits, which may,
since the date of such proclamation of sale, have been received by the decree-holder.
Pending suit shall stand dismissed -
9. Where any suit or proceeding, for the enforcement of any obligation under the bonded
labour system, including a suit or proceeding for the recovery of any advance made to a
bonded labourer, is pending at the commencement of this Act, such suit or other
proceedings shall, on such commencement, stand dismissed.
10 On the commencement of this Act, every bonded labourer who has been detained
in civil prison, whether before or after judgment, shall be released from detention
forthwith.

Property of bonded labourer to be freed from mortgage -

1. All property vested in a bonded labourer which was, immediately before the
commencement of this Act under any mortgage, charge, lien or other incumbrances in
connection with any bonded debt shall stand freed and discharged from such mortgage,
charge, lien or other incumbrances, and where any such property was, immediately
before the commencement of this Act, in the possession of the mortgagee or the holder of
the charge, lien or incumbrance, such property shall on such commencement, be restored
to the possession of the bonded labourer.
2. If any delay is made in restoring any property, to the possession of the bonded labourer,
such labourer shall be entitled, to recover from the mortgagee or holder of the lien,
charge or incumbrance, such mesne profits as may be determined by the civil court of the
lowest pecuniary jurisdiction within the local limits of whose jurisdiction such property is
situated.
Freed bonded labourer not to be evicted from homestead -
1. No person who has been freed and discharged under this Act from any obligation to
render any bonded labour, shall be evicted from any homestead or other residential
premises which he was occupying immediately before the commencement of this Act as
part of the consideration for the bonded labour.
2. If, after the commencement of this Act, any such person is evicted by the creditor from
any homestead or other residential premises, the Executive Magistrate in charge of the
Sub-Division within which such homestead or residential premises is situated shall, as
early as practicable, restore the bonded labourer to the possession of such homestead or
other residential premises.
Creditor not to accept payment against extinguished debt -
1. No creditor shall accept any payment against any bonded debt which has been
extinguished or deemed to have been extinguished or fully satisfied by virtue of the
provisions of this Act.
2. Whoever contravenes the provisions of sub-section (1) shall be punishable with
imprisonment for a term which may extend to three years and also with fine.
3. The court, convicting any person, in addition to the penalties which may be imposed,
direct the person to deposit the amount accepted, in the court, in the order for being
refunded to the bonded labourer.

IMPLEMENTING AUTHORITIES
Authorities who may be specified for implementing the provisions of this Act - Sec10
The State Government may confer such powers and impose such duties on a District Magistrate
to ensure that the provisions of this Act are properly carried out and the District Magistrate may
specify the officer, subordinate to him, who shall exercise all or any of the powers, and perform
all or any of the duties, so conferred or imposed and the local limits within which such powers or
duties shall be carried out by the officer so specified.
Duty of District Magistrate and other officers to ensure credit - Sec 11
The District Magistrate authorised and the officer specified by the District Magistrate shall, as
far as practicable, try to promote the welfare of the freed bonded labourer by securing and
protecting the economic interests of such bonded labourer so that he may not have any occasion
or reason to contract any further bonded debt.
Duty of District Magistrate and officers authorised by him - Sec12
It shall be the duty of every District Magistrate and every officer specified by him to inquire
whether, after the commencement of this Act, any bonded labour system, or any other form of
forced labour is being enforced by, or on behalf of, any person resident within the local limits of
his jurisdiction and if, as a result of such inquiry, any person is found to be enforcing the bonded
labour system or any other system of forced labour, he shall forthwith take such action as may be
necessary to eradicate the enforcement of such forced labour.
Jai Singh v. State of Punjab
Where family members of petitioners were made to work in obligation of loan advanced, it was
held that it is a clear violation of mandate given under Article 23 of the Constitution and Bonded
Labour System (Abolition) Act, 1976. Hence, District Magistrate was directed to take immediate
action under Section 12 of the Act.

BADHUA MUKTI MORCHA V. UNION OF INDIA

The Public Interest Litigation was filed before the Supreme Court under Article 32 of The
Constitution of India to issue appropriate directions for the prohibition of Bonded Labour. The
petitioner conducted a survey in stone quarries situated in Faridabad district. It was found by the
petitioner that they were living in substandard conditions. There were a lot of middlemen who
extracted the money from the workmen as commission.
The court directed the Central Government and the State of Haryana to construct washrooms,
suitable drinking facilities, provide medical kits to raise the living standards of the
workmen. The court directed the Central Government to conduct inspection every fortnight and
in case, any workman is found in a distressed condition, he should be provided medical and legal
assistance.
The court went on to observe that, the right to live with human dignity enshrined in Article 21
derives its life breath from the Directive Principles of State Policy and particularly Clauses (e)
and (f) of Article 39 and Articles 41 and 42 and at the least, therefore, it must include protection
of the health and strength of workers men and women, and of the tender age of children against
abuse, opportunities, and facilities for children to develop in a healthy manner and in conditions
of freedom and dignity, educational facilities, just and humane conditions of work and maternity
relief. These are the minimum requirements which must exist in order to enable a person to live
with human dignity and no State neither the Central Government nor any State Government has
the right to take any action which will deprive a person of the enjoyment of these basic
essentials.
There have been cases in India even after the enactment of the Act which the Apex Court has
dealt very skilfully.
In the case of Neerja Chaudhury v. State of Madhya Pradesh, the Supreme Court ruled – “It is
the plainest requirement of Articles 21 and 23 of the Constitution that bonded labourers must be
identified and released and on release, they must be suitably rehabilitated… Any failure of action
on the part of the State Government[s] in implementing the provisions of [the Bonded Labour
System (Abolition) Act] would be the clearest violation of Article 21 and Article 23 of the
Constitution.”
There are a few constitutional provisions that safeguard the system of bonded labour from being
practised. In this case, The Apex Court did a good job in relating the issue of bonded labour
system with the person’s fundamental right enshrined in Article 21 of the Constitution and gave a
clear thrust to the State to implement Article 21 and Article 23 of the Constitution.
In the case of People’s Union for Democratic Rights v. Union of India, the Supreme Court of
India delivered the judgement stating – “Where a person provides labour or service to another for
remuneration which is less than minimum wage, the labour or service provided by him clearly falls
within the scope and ambit of the word `forced labour’…”
The Court has tried to expand the scope of forced labour and protect the rights of citizens time
and again.
Conclusion
There are several factors which are causing the continuance of this system of forced labour.
Faulty system of adjustment of wages with the amount lent, prevalent ignorance, illiteracy, being
socially backward, lack of debtor’s organisation etc, are all factors contributing to the continuance
of bonded labour.
The system of bonded labour is an agreement between two parties; an agreement which in
today’s date, stands void in the eyes of law and is also a punishable offence under numerous
legislations of India. Due to the gravity of this offence, it has also been addressed in numerous
international conventions.
Bonded labour is probably the least known form of slavery in today’s date and yet, ironically, it is
most widely performed form of slavery. There have been several initiatives by the National
Human Rights Commission to curb this practice. Apart from that, even the Supreme Court has
condemned this practice in India and has given it an expansive meaning so that it is not practised
in any form whatsoever.
We must take steps against any system of forced labour and should voice out if a person is being
oppressed due to his status. This is a system which degrades a human to a commodity or an
asset. It should not only be prohibited by law but also be seriously punished. Thus, forced labour,
whatever form it may be, should be condemned by everyone.