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

- **Citation:** [1991] Supp. 2 S.C.R. 357
- **Court:** Supreme Court of India
- **Decided:** 1991-11-19
- **Bench:** Ran<:Janath Misra, Yogeshwar Dayal
- **Source:** https://unisonlegal.in/judgment/supreme-court-of-india/rajangam-secretary-district-beedi-workers-uni-on-and-ors-v-state-of-tamil-nadu-11412
- **Pages:** 7

## Headnote

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-Formulation of Schemes
for proper implementation of the provisions for welfare of
workers-Directions issued.
Child La.6our Abolition Act, 1986:
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:
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 contract labour system and the non-implementation of Beedi and Cigar
Workers (Conditions of Employment) Act, 1966. This Court consid;.
ered the petitions and appointed a Trust viz., Society for Community 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 Government 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
Court,
357
A
B
c
D
E
F
G
H
358
SUPREME COURT REPORTS
(1991] SUPP. 2 S.ti:.R.
A
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]
2. An establishment of the Regional Provident Fund CommisB
siOner with full equipment for the purpose 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. [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 employment 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 immediately or in a phased manner to _be decided by the State Governmtmt.
but within a period not exceeding three years from now. The provisions of Child Labour Abolition Act, 1986 should be strictly implemented. [361 G, HJ
E
F
G
H
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]
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 requirements of the matter. [362-F]
7. Since beedi manufacturing process is 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 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
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 Government sho

## Text

RAJANGAM, SECRETARY,
DISTRICT BEEDI WORKERS' UNI'ON AND ORS.
v.
STATE OF TAMIL NADU AND ORS.
NOVEMBER 19, 1991
[RAN<:JANATH MISRA, CJ. AND YOGESHWAR DAYAL, J.]
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-Formulation of Schemes
for proper implementation of the provisions for welfare of
workers-Directions issued.
Child La.6our Abolition Act, 1986:
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:
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 contract labour system and the non-implementation of Beedi and Cigar
Workers (Conditions of Employment) Act, 1966. This Court consid;.
ered the petitions and appointed a Trust viz., Society for Community 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 Government 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
Court,
357
A
B
c
D
E
F
G
H
358
SUPREME COURT REPORTS
(1991] SUPP. 2 S.ti:.R.
A
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]
2. An establishment of the Regional Provident Fund CommisB
siOner with full equipment for the purpose 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. [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 employment 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 immediately or in a phased manner to _be decided by the State Governmtmt.
but within a period not exceeding three years from now. The provisions of Child Labour Abolition Act, 1986 should be strictly implemented. [361 G, HJ
E
F
G
H
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]
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 requirements of the matter. [362-F]
7. Since beedi manufacturing process is 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 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
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 Government 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 extended 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
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 & 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
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]
ORIGINAL JURISDICTION: Writ Petition (Civil) No.126~ of 1987.
WITH
Writ Petition (Civil) No. 13064 of 1983.
(Under Article 32 of the Constitution oflndia).
ffar Dev Singh and R.K. Agnihotri for the Petitioners.
c
D
E
F
G
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 Employment) 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.
E
F
G
H
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.
"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
Scheme is being arranged. The Attorney General is present in
Court today. We have also suggested to him that he may participate 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
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:
"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 responses. 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
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:
·
I.
2.
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.
An establishment of the Regional Provident Fw1d Commissioner
with full equipment for the purpose 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.
c
D
E
3.
F
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 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 immediately or in a phased manner to be decided by the State GoV;ernments 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 ramB
pant 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 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 WorkD
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.
F
G
H
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.
11 . In view of the health hazard involved in the manufacturing process, 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.
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 iQdependent 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 operative. 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
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 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.
A
B