RAJANGAM, SECRETARY, DISTRICT BEEDI WORKERS UNION AND ORS.versusSTATE OF TAMIL NADU AND ORS.

                   RAJANGAM, SECRETARY,                                     A
          DISTRICT BEEDI WORKERS' UNI'ON AND ORS.
                                      v.
                 STATE OF TAMIL NADU AND ORS.

                          NOVEMBER 19, 1991
                                                                            B
   [RAN<:JANATH MISRA, CJ. AND YOGESHWAR DAYAL, J.]

        Beedi & Cigar Workers (Conditions ofEmployment) Act, 1966/Rules,
1968:
     Improper/non-implementation of in the State of Tamil
Nadu--Employment of child labour-Prohibition of-Contract labour
                                                                            c
system-Prevalence of-Whether indispensable-Formulation ofSchemes
for proper implementation of the provisions for welfare of
workers-Directions issued.
        Child La.6our Abolition Act, 1986:                                  D
      Manufacture of beedi and cigar-Health hazard-Employment of
child labour--Aboliti011 of-Directions issued/or strict implementation.
        Beedi Workers Cess Act, 1976/Beedi Workers Welfare Fund Act,
1976:
                                                                            E
      In the nature of beneficial provisions--lmplementation o/in the t~e
spirit--lnsurance Scheme for workers-Directions issued.
      These petitions relate to child employment, prevalence of con-
tract labour system and the non-implementation of Beedi and Cigar
Workers (Conditions of Employment) Act, 1966. This Court consid;.           F
ered the petitions and appointed a Trust viz., Society for Commu-
nity Organisation Tr"st 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 formulatil'!g a
scheme, two Schemes came to be formulated, one by the State Gov-            G
ernment and the other by the petitioners. This Court directed that
the terms should be settled for one Scheme to be accepted by the
Court, and given time to the Union of India to respond to the same.
Union of India filed certain objections.
    Rejecting the objections and disposing of the petitions, this
                                                                            H
Court,
                                     357
          358               SUPREME COURT REPORTS          (1991] SUPP. 2 S.ti:.R.

    A         HELD: 1.1 The Beedi and Cigar Workers (Condition of Em-
         ployment) 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]

               2. An establishment of the Regional Provident Fund Commis-
    B    siOner with full equipment for the purpose of implementation of the
         Statute should be located within the area and the Regional provi-
         dent Fund Commissioner should have directions to enforce the Act
         in all aspects. This establishment should start functioning within
         three months from now. [361 E, F]

    C         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 employ-
         ment improve. [361 F:..G]

              4. Tobacco manufacturing has indeed health hazards. Child
D       labour in this trade should therefore be prohibited as far as possible
        and employment of child labour should be stopped either immedi-
        ately or in a phased manner to _be decided by the State Governmtmt.
        but within a period not exceeding three years from now. The provi-
        sions of Child Labour Abolition Act, 1986 should be strictly imple-
        mented. [361 G, HJ
E
             S. 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]

F             6. Beedi trade is a flourishing one and exploitation of labour
        is rampant in this trade. A governmental labour establishment should
        be located in the area with full complement to answer the require-
        ments of the matter. [362-F]

               7. Since beedi manufacturing process is carried more outside
G        the factory than within, the system of maintaining the registers as a
        regulating practice has become necessary. Great care should, there-
        fore, be taken ao 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. [362-CJ

H               8. The Bcedi Workers Welfare Cess Act, 1976 and the Beedi



                                                                                     r/
                                                                                     •
                      WORKERS' UNION v. STATE                       359

Workers Welfare Fund Act, 1976 which contain beneficial provision          A
should be implemented in the true spirit and since they are legislations
of the Central Government, the machinery of the Central Govern-
ment should be made operational in the area. [362-D]

    9. It should be ensured that pass books are maintained in the
names of actual workers. [362-E]                                           B
     10. The Welfare Fund should be properly administered and in
the case of death of workman appropriate assistance should be ex-
tended out of the Fund quickly. (362 E, F]

      11. In view of the health hazard involved in the manufacturing
process, every worker including children, if employed should be            c
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          D
external agency._ The Tamil Nadu State Legal Aid & Advice Board
can be entrusted with this responsibility. A three year period of
such supervision would meet the requirement and at the end of such
period the scheme is expected 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           E
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 of the Board. [362 G, H,
363-A]
                                                                           F

     ORIGINAL JURISDICTION: Writ Petition (Civil) No.126~ of 1987.

                                    WITH

                   Writ Petition (Civil) No. 13064 of 1983.                G
                (Under Article 32 of the Constitution oflndia).

     ffar Dev Singh and R.K. Agnihotri for the Petitioners.

    Raju Ramachandran, R.Mohan, Ms.Shanta Yasudeva, P.i<..Manohar,
K.Swamy, Ms.A.Subhashini and RC.Kohli for the respondents.                 H
     360                 SUPREME COURT REPORTS               (19911SUPP.2 S.C.R.

A          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
B    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
C    non-implementation of the Beedi and Cigar Workers (Conditions of Em-
     ployment) Act, 1956. We have considered it appropriate to deal with ~th
     the applications together.

          This Court by an Order dated 24th October, 1989 appointed a social
    organisation by name 'Society for Community Organisation Trust' (SOCCO)
D   for- making appropriate ·investigation and furnish a report to the Court.
    After the Report was received and circulated, the State Government of
    Tamil Nadu and the manufacturers were given time to file their response
    by way of affidavits. This Court then directed that a scheme should be
    fonnulated for consideration of the Court. This Court made· an Order on
    24th July, 1991 to the following effect.
E
                 "WP- 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 got interested
                and meeting on a bigger scale for the purpose of finalising the
F               Scheme is being arranged. The Attorney General is present in
                Court today. We have also suggested to him that he may par-
                ticipate in tbe proceedings to help the scheme to be finalised
                as quickly as possible."
          Then C''lme two Schemes, one by the petitioners and the other by the
G   State of Tamil Nadu. By order dated October 8, 1991, the Court directed
    on 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 10th October,
    199 I, on the representation of the parties, the Court made the following
    Order:

H              "Pursuant to our earlier direction, the employers, employees
               and the Staoo Government througb their representatives met
               WORKERS' UNION v.         STATE [MISRA, CJ.]              361

           and have sorted out some of.the differences. Matters which are      A
           agreed to by all and aspects which are not agreed to by the
           employers have been separately 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 re-
           sponses. The appropriate Ministry of the Government of India
           to respond to the relevant aspects."                                B
Pursuant to this Order, the Under Secwtary in the Ministry of Labour or
the Union Government has filed an affidavit which we have examined.
                                                               r



       The objection which have been especially referred to in the affidavit
of the Central Government do not really survive after the matter is heard
inasmuch as these are questions with which the Union Government is not
                                                                               c
concerned and under the constitutional scheme, they relate to the power of
the State Government. We would like to disPose ·of these petitions with
the following directions taken from the schemes as formulated by the
petitioners and the State Government:                                     ·
                                                                               D
    I.   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 Fw1d Commissioner
                                                                               E
         with full equipment for the purpose of implementation of the
         Statute should be located within the area and the Regional Provi-
         dent Fund Commissioner should have directions to enforce the
         Act in all aspects. This establishment should start functioning
         within three months from now.
                                                                               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 im-
         prove.

    4.   Tobacco manufacturmg has indeed health hazards. Child labour          G
         in this grade should therefore be prohibited as far as possible and
         employment of child labour should be stopped either immedi-
         ately or in a phased manner to be decided by the State GoV;ern-
         ments out within a period not exceeding three years from rlow.
         The provi~ions of Child Labour Abolition Act, 1986 should be
         strictly implemented.                                                 H
    362                 SUPREME COURT REPORTS               [1991) SUPP. 2 S.C.R.

A         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 flourishing one. Exploitation of labour is ram-
B              pant in this trade. A governmental labour establishment should
               be located in the area with full complement to answer the re-
               quirements of the matter.

          7.   Since beedi manufacturing process is carried more outside the
               factory than within, the system of maintaining the registers as a
C              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 Work-
D              ers 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
E              in the names of actual workers. This should be ensured.

          IO. 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.

F         11 . In view of the health hazard involved in the manufacturing proc-
               ess, every worker including children, if employed, should be
               insured for a minimum amount of Rs.50,000 an_d the premium
               should be paid by the employer and the incidence should not be
               passed on to the workman.

G         We are of the view that the implementation of the scheme within t)'l.e
    state in an effective manner would require to be supervised by an iQde-
    pendent 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 p~riod the scheme is expected to become effectively opera-
H   tive. We, therefore, require the Tamil Nadu Board to undertake the super·
                     WORKERS' UNION v.        STATE [MISRA, CJ.)              '363

      vision from January, 1992 and we direct the Tamil Nadu Government and          A
      the said Board to coordinate the implementation. 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. I ,500 (fifteen) per month from January
      1992, as an allowance to meet out of pocket expenses by the State Gov-
      ernment for the period he does the work as Secretary of the Board.
                                                                                     B
           We dispose of these cases with the directions indicated above and
      hope and trust that the authorities as also the employers and the employ-
      ees would try to implement the directions in true spirit. Liberty to apply.

      G.N.                                                Petitions disposed of.




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