Dear Umakanthan Sir,

With due respect to you and to your chair, May I request you to refer Section 13 of CLRA Act , 1970. which is reproduced herein below:-

Grant of licences.

13. (1) Every application for the grant of a licence under sub-section (1) of section 12 shall be made in the prescribed form and shall contain the particulars regarding the location of the establishment, the nature of process, operation or work for which contract labour is to be employed and such other particulars as may be prescribed) The licensing officer may make such investigation in respect of the application received under sub-section (1) and in making any such investigation the licensing officer shall follow such procedure as may be prescribed.

(3) A licence granted under this Chapter shall be valid for the period specified therein and may be renewed from time to time for such period and on payment of such fees and on such conditions as may be prescribed.

Further ABC being PE has given Trunkey project to XYX contractor who in turn has appointed PQR as their Sub Contractors in such situation it is imperative to issue Form V to PQR who happens to be sub contractor of XYZ. Kindly revert.

Azim Charania.

From India, Mumbai
Dear Azim,

Pl. refer to my reply dt 2-5-13 to discussion no.459074. In order that one be a principal employer, he must be exercising both supervision and control over the establishment. No doubt that the establishment belonging to ABC is only under his control and supervision.Since the work of the establishment is entrusted to with XYZ to be accomplished through his workforce on contract basis, in relation to such a contract, ABC becomes the principal employer, XYZ, the contractor and the workforce of XYZ, the contract labor.Now, in so for as the contact is concerned, ABC has registered himself as "principal employer" u/s 7 of the C.L.R.A Act; up on his furnishing form V, XYZ has taken license as a "contractor" u/s 12 of the Act remitting the prescribed license fee and the deposit amount based on the maximum no. of contract labor he is going to employ on the project in the establishment of ABC.Thus, in the contractual arrangement of the particular work of the establishment of ABC is concerned, the triple elements of principal employer, contractor and the contract labor are very much present.Now, for obvious reasons, XYZ engages PQR as his "sub-contractor" on the same project.In such a situation, your question is, had I understood correctly, who is to issue form V to PQR,the sub-contractor?- at this juncture I reproduce the observations of the hon'ble High Court of Bombay in its judgment in "Gammon India Ltd. v. Asst. Commr of Labor-[ 1976 Lab I.C 745]" as below:

"On a careful consideration of the scheme and various provisions of the Act, it appears that only one principal employer

is contemplated under the Act.There are two distinct ways in which the Act seeks to regulate contract labor.Section 7

deals with the 'principal employer' whereas Section 12 deals with the 'contractor' These two provisions and the methods

of regulation show that a person cannot be a licensee u/s 12 of the Act as well as a principal employer u/s 7 of the Act"

Hence, I reiterate my earlier view-point in this connection.

From India, Salem
Dear Umakanthan,
As per your thread on the subject wherein you have mentioned citation about Gammon India Ltd Versus Asstt labour Commissioner 1976 Lab I C Page 745 Bombay High Court, inadvertently you have mentioned Bombay High Court, it is SC, kindly revert, It is correct, otherwise mail me soft copy of Bombay High Court citation.
Azim Charania

From India, Mumbai
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