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PETITIONER: RAJANGAM, SECRETARY,DISTRICT BEEDI WORKERS’ UNION AND ORS.

       Vs.

RESPONDENT: STATE OF TAMIL NADU AND ORS.

DATE OF JUDGMENT19/11/1992

BENCH: MISRA, RANGNATH (CJ) BENCH: MISRA, RANGNATH (CJ) YOGESHWAR DAYAL (J)

CITATION:  1991 SCR  Supl. (2) 357  1992 SCC  (1) 221  JT 1991 (5)   299        1991 SCALE  (2)1043

ACT: Beedi  &  Cigar  Workers (’Conditions  of  Employment  ,Act, 1966/Rules, 1968:     Improper/non-implementation  of in  the  State  of Tamil Nadu--Employment  of child labour--Prohibition  of--Contract labour system--Prevalence of--Whether  indispensable--Formu- lation of Schemes .for proper implementation  of the  provi- sions for welfare of workers--Directions issued. Child Labour Abolition Act, 1986.     Manufacture of beedi and cigar---Health hazard---Employ- ment  of child labour--Abolition of---Directions issued  for strict implementation. Beedi Workers Cess Act, 1976/Beedi Workers Welfare Fund Act, 1976.’ In the nature of beneficial provisions--Implementation o fin the true spirit----Insurance ,Schem for  workers--Directions issued.

HEADNOTE:     These  petitions relate to child employment,  prevalence of  contract  labour system and  the  non-implementation  of Beedi  and  Cigar Workers (Conditions  of  Employment)  Act, 1966.  This Court considered the petitions and  appointed  a Trust  viz.,  Society for Community Organisation  Trust  for conducting appropriate investigation and to submit a report. The Trust submitted its report, which was then circulated to the Respondent State Government and the beedi manufacturers. On  the direction of this Court for formulating  a   scheme, two  Schemes cameto be formulated, one by the State  Govern- ment  and the other by the petitioners. This Court  directed that     the terms should be settled for one Scheme to be accept- ed  by  the Court, and given time to the Union of  India  to respond  to  the same. Union of India filed  certain  objec- tions.     Rejecting the objections and disposing of the petitions, this Court, 358        HELD: 1.1  The Beedi and Cigar Workers (Condition  of Employment)  Rules, 1968 should be strictly implemented  and once  that is done the evil of not furnishing the  books  to the home workers would be eradicated. [361 D, E]

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     2.   An establishment of the Regional  Provident  Fund Commissioner  with full equipment for the purpose of  imple- mentation  of the Statute should be located within the  area and  the  Regional provident Fund Commissioner  should  have directions  to enforce the Act in all aspects.  This  estab- lishment  should start functioning within three months  from now. [361 E, F]       3.   The  labour  laws as also the  Beedi   and  Cigar Workers  (Conditions of Employment) Act should  be  strictly enforced  so that the workers get their legitimate dues  and the conditions of employment improve. [361 F-G] 4.   Tobacco manufacturing has indeed health hazards.  Child labour  in this trade should therefore be prohibited as  far as possible and employment of child labour should be stopped either  immediately or in a phased manner to be  decided  by the State Government but within a period not exceeding three years from now.The provisions of Child Labour Abolition Act, 1986 should be strictly implemented. [361 G, 11]       5.  The Union Government is directed to look into  the aspect  whether contract labour system is  indispensable  in this trade and take its final decision one way or the  other within six months from now. [362-A]       6.  Beedi trade is a flourishing one and  exploitation of  labour is rampant in this trade. A  governmental  labour establishment  should he located in the area with full  com- plement to answer the requiretenants of the matter. [362-F] 7.   Sincc Beedi manufacturing process is carried more  out- side the factory than within, the system of maintaining  the registers  as a regulating  practice has  become  necessary. Great care should, there-               fore be taken to ensure the maintenance of the register  system  as the bulk of the employees  outside  the factories can be regulated through the record maintained  in the registers. [362-C] 8.  The Beedi Workers Welfare Cess Act, 1976 and the Beedi 359 Workers  Welfare  Fund Act, 1976  which  contain  beneficial provision should be implemented in the true spirit and since they are legislations of the Central Government, the machin- ery of the Central Government should be made operational  in the area. [362-D]     9.  It should be ensured that pass hooks are  maintained in the names of actual workers. [362-E]     10. The Welfare Fund should be properly administered and in  the  case  of death of  workman  appropriate  assistance should be extended out of the Fund quickly. [362 E, F]     11.  In view of the health hazard involved in the  manu- facturing  process,  every  worker  including  children,  if employed should be insured for a minimum amount of Rs.50,000 and  the  premium  should be paid by the  employer  and  the incidence should not be passed on to the workman. [362-F]     12. The implementation of the scheme within the State in an  effective  manner would require to be supervised  by  an independent external agency. The Tamil Nadu State Legal  Aid JUDGMENT: three  year  period of such supervision would meet  the  re- quirement  and at the end of such period the scheme  is  ex- pected to become effectively operative. The Tamil Nadu Board may  undertake the supervision from January 1992, and it  is directed  that  the State Government and the said  Board  to coordinate  the  implementation.The Secretary of  the  Tamil Nadu  Board who would be mainly in-charge of the  field  job shall be paid by the State Government a sum of Rs.1,500  per month  from  January 1992, as an allowance to  meet  out  of pocket expenses for the period he does the work as Secretary

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of the Board. [362 G, H, 363-A]

& ORIGINAL  JURISDICTION:  Writ Petition (Civil) No.  1262  of 1987 WITH Writ Petition (Civil) No. 13064 of 1983. (Under Article 32 of the Constitution of India). Har Dev Singh and R.K. Agnihotri for the Petitioners.     Raju   Ramachandran,   R.Mohan,  Ms   Shanta   Vasudeva, P.K.Manohar, K.Swamy, Ms.A.Subhashini and R.C.Kohli for  the respondents. 360 The Judgment of the Court was delivered by      RANGANATH  MISRA, CJ. A letter petition  received  from the District Beedi Worker’s Union, Tirunelveli in the  State of Tamil Nadu was treated as an application under Article 32 of  the  Constitution and  notice was  ordered  intially  to three factories referred to in the said letter  and later to other  beedi  manufacturing units within the State.  In  the letter,  complaint  was made about manipulation  of  records regarding  employees,  non-payment of appropriate  dues  for work  taken,  failure  to implement the  provisions  of  the labour  laws,  prevalence  of contract  labour  system  etc. There  is  a connected petition also relating  to  the  same subject  matter  with different ancillary  reliefs  covering employment of child labour and the non-implementation of the Beedi  and  Cigar Workers (Conditions  of  Employment)  Act, 1956. We have considered it appropriate to deal with both the applications together. This Court by an Order dated 24th October, 1989 appointed  a social organisation by name ’Society for Community Organisa- tion           Trust           (SOCCO)            ganisation for  making  appropriate investigation  and   circuated  the State to the court. After the Report was received an    were given time to file their respones  Tamil Nadu and the  manu- facturers were given time to file their response by  way  of affidavits.  This Court then directed that a  scheme  should be  formulated  for   for consideration of the  Court.  This court   made an Order  on 24th July, 1991 to  the  following effect.                   "We  gather from the submissions  made  at               the bar that in the meantime some exercise has               been undertaken for the purpose of  finalising               the Scheme. Initially the state of Tamil  Nadu               has  taken the lead but later Union  of  India               has also go interested and meeting on a bigger               ,scale  for  the  purpose  of  finalising  the               Scheme is being arranged. The attorney General               is present in               Court  today.  We have also suggested  to  him               that he may par-               ticipate in the proceedings to help the  schem               to be finalised as quickly as possible." Then  came two Schemes, one by the petitioners and the other by  the  State of r Thamil Nadu. By order dated  October  8, 1991, the Court directedon -the basis of consent of  counsel that  at  a conference the terms should be settled  for  one Scheme to be adopted by the Court. On 10 th October,   1991, on  the  representation of the parties, the Court  made  the following Order:               "Pursuant  to our earlier direction,  the  em-               ployers,  employees and the  State  Government

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             through their representatives met               361               and have sorted out, some of the  differences.               Matters  which are agreed to by all.  and  as-               pects which are not agred to by the  employers               have been seperately shown. A copy of this may               be served on   counsel for the Union of  India               present  in  the court today and he  is  given               three  weeks’ time to indicate the  responses.               The appropriate Ministry of the Government  of               india to respond to the relevant aspects." Pursuant to this Order, the Under Secretary  in the   Minis- try of Labour of the Union Government has filed an affidavit which we have  examined.     The objection which  have. been especially refered to in the  affidavit   of  the Central Government  do  not  really surive   after  the matter  is heard inasmuch as  these  are questions  with which the union Government in not  concerned and Under the constitutional scheme they relate to the power of  the  State  Government. w,e would like’  to  dispose  of these petitions with the following directions taken from the scheme  as  formulated  by the  petitioners  and  the  State Government,                 1.  The Beedi and Cigar Workers  (Conditions               of  Employment) Rules 1969 should be  strictly               implemented ,and once that is done the evil of               not  furnishing the books to the home  workers               would be eradicated.                2. An establishment of the Regional Provident               Fund Commissioner with full ’equipment for the               purpopose  of implementation of  the   Statute               should  be  located within the  area  and  the               Regional  Provident Fund  commissioner  should               have directionS to enforce the                       Act in all aspects. This establishment               should  start functioning within three  months               from now.                3.  The  labour laws as also  the  Beedi  and               Cigar Workers (Conditions   of Employment) Act               should   be  strictly enforced  so  that   the               workers               get  their legitimate dues and the  conditions               of employment improve.                4.  Tobacco manufacturing has  indeed  health               hazards.  Child  labour in this  grade  should               theirfore   be prohibited as far  as  possible               and  employment  of  child  labour  should  be               stopped  either  immediately or  in  a  phased               manner to be decided by the State  GovernmeAts               Out within a perioed not exceeding three years               from  now.  The  provisions  of  Child  Labour               Abolition Act, 1986 should be strictly  imple-               mented.               362                 5. Contract labour system, it is alleged, is               indispensable this trade. The Union Government               is  directed  look  into this  aspect  of  the               matter and take its final decision one way  or               the other within six months from now.                 6. Beedi trade is a flourishmg one.  Exploi-               tation  of labour is rampant in this trade.  A               governmental  labour establishment  should  be               located  in the area with full  complement  to               answer the requirements of the matter.                 7.  Since  beedi  manufacturing  process  is

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             carried more outside the factory than  within,               the  system of maintaining the registers as  a               regulating  practice  has  become   necessary.               Great  care  should, therefore,  be  taken  to               ensure the maintenance of the register  system               as  the  bulk  of the  employees  outside  the               factories  can be regulated only  through  the               record maintained in the registers.                 8. The Beedi Workers Welfare Cess Act,  1976               and  the Beedi Workers Welfare Fund Act,  1976               which contain beneficial provisions should  be               implemented in the true spirit and since  they               are  legislations of the  Central  Government,               the machinery of the Central Government should               be made operational in the area.                9.  Grievance  has been made  that  the  pass               books  are  not  maintained in  the  names  of               actual workers. This should be ensured.                 10.  The  Welfare Fund  should  be  properly               administered after and in the case of death of               a  workman  appropriate assistance  should  be               extended out of the Fund quickly.                 11. In view of the health hazard involved in               the  manufacturing process, every  worker  in-               cluding  children,  if  employed,  should   be               insured for a minimum amount of Rs.50,000  and               the premium should be paid by the employer and               the  incidence should not be passed on to  the               workman.     We are of the view that the implementation of the scheme within the state in an effective manner would require to  be supervised by an independent external agency. The Tamil Nadu State  Legal Aid & Advice Board can be entrusted  with  this responsibility. A three year period of such supervision,  in our  opinion, would meet the requirement and at the  end  of such  period  the scheme is expected to  become  effectively operative.  We, therefore, require the Tamil Nadu  Board  to undertake the super. 363 vision  from  January,  1992 and we direct  the  Tamil  Nadu Government and the said Board to coordinate the  implementa- tion.  The Secretary of the Tamil Nadu Board Mr.  Raja,  who would  be mainly in-charge of the field job shall be paid  a sum  of Rs. 1,500 (fifteen) per month from January 1992,  as an  allowance  to meet out of pocket expenses by  the  State Government  for the period he does the work as Secretary  of the Board.     We dispose of these cases with the directions  indicated above  and hope and trust that the authorities as  also  the employers  and  the  employees would try  to  implement  the directions in true spirit. Liberty to apply. G.N.                                               Petitions disposed of. 364