THE BONDED LABOUR SYSTEM (ABOLITION) ACT, 1976

ACT NO. 19 OF 1976

[9th February, 1976.]
An Act 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 or incidental
thereto. BE it enacted by Parliament in the Twenty-seventh Year of the
Republic of India as follows:-- CHAP PRELIMINARY CHAPTER I PRELIMINARY

Short title, extent and commencement.

1. Short title, extent and commencement.- (1) This Act may be called the
Bonded Labour System (Abolition) Act, 1976.

(2) It extends to the whole of India.

(3) It shall be deemed to have come into force on the 25th day of
October, 1975.

Definitions. 2. Definitions.- In this Act, unless the context otherwise
requires,-- (a) "advance" means an advance, whether in cash or in kind,
or partly in cash or partly in kind, made by one person (hereinafter
referred to as the creditor) to another person (hereinafter referred to
as the debtor); (b) "agreement" means an agreement (whether written or
oral, or partly written and partly oral) between a debtor and crelitor
and 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 following forms of forced labour, namely:-- Adiyamar, Baramasia,
Basahya, Bethu, Bhagela, Cherumar, Garru-galu, Hali, Hari, Harwai, Holya,
Jana, Jeetha, Kamiya, Khundit-Mundit, Kuthia, Lakhari, Munjhi, Mat,
Munish system, Nit-Majoor, Paleru, Padiyal, Pannayilal, Sagri,
Sanji,Sanjawat, Sewak, Sewakia, Seri, Vetti; 552 (c) "ascendant" or
"descendant", in relation to a person belonging to a matriarchal society,
means the person who corresponds to such expression in accordance with
the law of succession in force in such society; (d) "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; (e) "bonded
labour" means any labour or service rendered under the bonded labour
system; (f) "bonded labourer" means a labourer who incurs, or has, or is
presumed to have, incurred, a bonded debt; (g) "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,-- (i) in consideration of an advance
obtained by him or by any of his lineal ascendants or descendants
(whether or not such advance is evidenced by any document) and in
consideration of the interest, if any, due on such advance, or (ii) in
pursuance of any customary or social obligation, or (iii) in pursuance of
an obligation devolving on him by succession, or (iv) for any economic
consideration received by him or by any of his lineal ascendants or
descendants, or (v) by reason of his birth in any particular 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 553

(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;
1*[Explanation.-- For the removal of doubts, it is hereby declared that
any system of forced, or partly forced labour under which any workman
being contract labour as defined in clause (b) of

sub-section (1) of section 2 of the Contract Labour (Regulation and
Abolition) Act, 1970 (37 of 1970), or an inter-State migrant

workman as defined in clause (e) of sub-section (1) of section 2 of the
Inter-State Migrant Workmen (Regulation of Employment and Conditions of
Service) Act, 1979 (30 of 1979), is required to render labour or service
in circumstances of the nature mentioned in sub-

clause (1) of this clause or is subjected to all or any of the

disabilities referred to in sub-clauses (2) to (4), is "bonded labour
system" within the meaning of this clause.] (h) "family", in relation to
a person, includes the ascendant and descendant of such person; (i)
"nominal wages", in relation to any labour, means a wage which is less
than,-- (a) the minimum wages fixed by the Government, in relation to the
same or similar labour, under any law for the time being in force, and
(b) where no such minimum wage has been fixed in relation to any form of
labour, the wages that are normally paid, for the same or similar labour,
to the labourers working in the same locality; (j) "prescribed" means
prescribed by rules made under this Act.

Act to have overriding effect. 3. Act to have overriding effect.- The
provisions of this Act shall have effect notwithstanding anything
inconsistent therewith contained in any enactment other than this Act, or
in any instrument having effect by virtue of any enactment other than
this Act. CHAP ABOLITION OF BONDED LABOUR SYSTEM CHAPTER II ABOLITION OF
BONDED LABOUR SYSTEM

Abolition of bonded labour system.

4. Abolition of bonded labour system.- (1) On the commencement of this
Act, the bonded labour system shall stand abolished and every bonded
labourer shall, on such commencement, stand freed and discharged from any
obligation to render any bonded labour.

(2) 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 form of forced
labour.
--------------------------------------------------------------------- 1.
Added by Act 73 of 1985, s.2. 554

Agreement, custom, etc., to be void. 5. Agreement, custom, etc., to be
void.- On the commencement of this Act, any custom or tradition or any
contract, agreement or other instrument (whether entered into or executed
before or after the commencement of this Act), by virtue of which any
person, or any member of the family or dependant of such person, is
required to do any work or render any service as a bonded labourer, shall
be void and inoperative. CHAP EXTINGUISHMENT OF LIABILITY TO REPAY BONDED
DEBT CHAPTER III EXTINGUISHMENT OF LIABILITY TO REPAY BONDED DEBT

Liability to repay bonded debt to stand extinguished.

6. Liability to repay bonded debt to stand 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.

(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.

(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, on such commencement, to have been fully
satisfied.

(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.

(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.

(6) If restoration of the possession of any property referred to

in sub-section (4) or sub-section (5) 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 as may be specified
in the order. 555

(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.

(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 proclamaation 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.

(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 proceeding 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, etc. 7. Property
of bonded labourer to be freed from mortgage, etc.-

(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, in so far as
it is relatable to the bonded debt, stand freed and discharged from such
mortgage, charge, lien or other incumbrances, and where any such property
was, immediately before the commmencement of this Act, in the possession
of the mortgagee or the holder of the charge, lien or incumbrance, such
property shall (except where it was subject to any other charge), on such
commencement, be restored to the possession of the bonded labourer.

(2) If any delay is made in restoring any property, referred to

in sub-section (1), to the possession of the bonded labourer, such
labourer shall be entitled, on and from the date of such commencement, 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. 556

Freed bonded labourer not to be evicted from homestead, etc. 8. Freed
bonded labourer not to be evicted from homestead, etc.-

(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, referred to in sub-section (1), 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.

9. 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 under sub-section (2) may, in
addition to the penalties which may be imposed under that sub- section,
direct the person to deposit, in court, the amount accepted

in contravention of the provisions of sub-section (1), within such period
as may be specified in the order for being refunded to the bonded
labourer. CHAP IMPLEMENTING AUTHORITIES CHAPTER IV IMPLEMENTING
AUTHORITIES

Authorities who may be specified for implementing the provisions ofthis
Act. 10. Authorities who may be specified for implementing the provisions
of this Act.- The State Government may confer such powers and impose such
duties on a District Magistrate as may be necessary 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. 11. Duty
of District Magistrate and other officers to ensure credit.- The District
Magistrate authorised by the State Government under section 10 and the
officer specified by the District Magistrate under that section 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. 12. Duty of
District Magistrate and officers authorised by him.- It shall be the duty
of every District Magistrate and every officer specified by him under
section 10 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 557 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. CHAP VIGILANCE
COMMITTEES CHAPTER V VIGILANCE COMMITTEES

Vigilance Committees.

13. Vigilance Committees.- (1) Every State Government shall, by
notification in the Official Gazette, constitute such number of Vigilance
Committees in each district and each Sub-Division as it may think fit.

(2) Each Vigilance Committee, constituted for a district, shall consist
of the following members, namely:-- (a) the District Magistrate, or a
person nominated by him, who shall be the Chairman; (b) three persons
belonging to the Scheduled Castes or Scheduled Tribes and residing in the
district, to be nominated by the District Magistrate; (c) two social
workers, resident in the district, to be nominated by the District
Magistrate; (d) not more than three persons to represent the official or
non-official agencies in the district connected with rural development,
to be nominated by the State Government; (e) one person to represent the
financial and credit institutions in the district, to be nominated by the
District Magistrate.

(3) Each Vigilance Committee, constituted for a Sub-Division, shall
consist of the following members, namely:-- (a) the Sub-Divisional
Magistrate, or a person nominated by him, who shall be the Chairman; (b)
three persons belonging to the Scheduled Castes or Scheduled Tribes and
residing in the Sub-Division, to be nominated by the Sub-Divisional
Magistrate; (c) two social workers, resident in the Sub-Division, to be
nominated by the Sub-Divisional Magistrate; (d) not more than three
persons to represent the official or non-official agencies in the
Sub-Division connected with rural development to be nominated by the
District Magistrate; (e) one person to represent the financial and credit
institutions in the Sub-Division, to be nominated by the Sub-Divisional
Magistrate; 558 (f) one officer specified under section 10 and
functioning in the Sub-Division.

(4) Each Vigilance Committee shall regulate its own procedure and
secretarial assistance, as may be necessary, shall be provided by-- (a)
the District Magistrate, in the case of a Vigilance Committee constituted
for the district; (b) the Sub-Divisional Magistrate, in the case of a
Vigilance Committee constituted for the Sub-Division.

(5) No proceeding of a Vigilance Committee shall be invalid merely by
reason of any defect in the constitution, or in the proceedings, of the
Vigilance Committee.

Functions of Vigilance Committees.

14. Functions of Vigilance Committees.- (1) The functions of each
Vigilance Committee shall be,-- (a) to advise the District Magistrate or
any officer authorised by him as to the efforts made, and action taken,
to ensure that the provisions of this Act or of any rule made thereunder
are properly implemented; (b) to provide for the economic and social
rehabiliation of the freed bonded labourers; (c) to co-ordinate the
functions of rural banks and co- operative societies with a view to
canalising adequate credit to the freed bonded labourer; (d) to keep an
eye on the number of offences of which cognizance has been taken under
this Act; (e) to make a survey as to whether there is any offence of
which cognizance ought to be taken under this Act; (f) to defend any suit
instituted against a freed bonded labourer or a member of his family or
any other person dependent on him for the recovery of the whole or part
of any bonded debt or any other debt which is claimed by such person to
be bonded debt.

(2) A Vigilance Committee may authorise one of its members to defend a
suit against a freed bonded labourer and the member so authorised shall
be deemed, for the purpose of such suit, to be the authorised agent of
the freed bonded labourer.

Burden of proof. 15. Burden of proof.- Whenever any debt is claimed by a
bonded labourer, or a Vigilance Committee, to be a bonded debt, the
burden of proof that such debt is not a bonded debt shall lie on the
creditor. 559 CHAP OFFENCES AND PROCEDURE FOR TRIAL CHAPTER VI OFFENCES
AND PROCEDURE FOR TRIAL

Punishment for enforcement of bonded labour. 16. Punishment for
enforcement of bonded labour.- Whoever, after the commencement of this
Act, compels any person to render any bonded labour shall be punishable
with imprisonment for a term which may extend to three years and also
with fine which may extend to two thousand rupees.

Punishment for advancement of bonded debt. 17. Punishment for advancement
of bonded debt.- Whoever advances, after the commencement of this Act,
any bonded debt shall be punishable with imprisonment for a term which
may extend to three years and also with fine which may extend to two
thousand rupees.

Punishment for extracting bonded labour under the bonded laboursystem.
18. Punishment for extracting bonded labour under the bonded labour
system.- Whoever enforces, after the commencement of this Act, any
custom, tradition, contract, agreement or other instrument, by virtue of
which any person or any member of the family of such person or any
dependant of such person is required to render any service under the
bonded labour system shall be punishable with imprisonment for a term
which may extend to three years and also with fine which may extend to
two thousand rupees; and, out of the fine, if recovered, payment shall be
made to the bonded labourer at the rate of rupees five for each day for
which the bonded labour was extracted from him.

Punishment for omission or failure to restore possession of propertyto
bonded labourers. 19. Punishment for omission or failure to restore
possession of property to bonded labourers.- Whoever, being required by
this Act to restore any property to the possession of any bonded
labourer, omits or fails to do so, within a period of thirty days from
the commencment of this Act, shall be punishable with imprisonment for a
term which may extend to one year, or with fine which may extend to one
thousand rupees, or with both; and, out of the fine, if recovered,
payment shall be made to the bonded labourer at the rate of rupees five
for each day during which possession of the property was not restored to
him.

Abetment to be an offence. 20. Abetment to be an offence.- Whoever abets
any offence punishable under this Act shall, whether or not the offence
abetted is committed, be punishable with the same punishment as is
provided for the offence which has been abetted. Explanation,--For the
purpose of this Act, "abetment" has the meaning assigned to it in the
Indian Penal Code (46 of 1860).

Offences to be tried by Executive Magistrates.

21. Offences to be tried by Executive Magistrates.- (1) The State
Government may confer, on an Executive Magistrates, the powers of a
Judicial Magistrate of the first class or of the second class for the
trial of offences under this Act; and, on such conferment of powers, the
Executive Magistate, on whom the powers are so conferred, shall be
deemed, for the purposes of the Code of Criminal Procedure, 1973 (2 of
1974), to be a Judicial Magistrate of the first class, or of the second
class, as the case may be. 560

(2) An offence under this Act may be tried summarily by a Magistrate.

Cognizance of offences. 22. Cognizance of offences.- Every offence under
this Act shall be cognizable and bailable.

Offences by companies.

23. Offences by companies.- (1) Where an offence under this Act has been
committed by a company, every person who, at the time the offence was
committed, was in charge of, and was responsible to, the company for the
conduct of the business of the company, as well as the company, shall be
deemed to be guilty of the offence and shall be liable to be proceeded
against and punished accordingly.

(2) Notwithstanding anything contained in sub-section (1), where any
offence under this Act has been committed by a company and it is proved
that offence has been committed with the consent or connivance of, or is
attributable to, any neglect on the part of, any director, manager,
secretary or other officer of the Company, such director, manager,
secretary or other officer shall be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished accordingly.
Explanation.--For the purposes of this section,-- (a) "company" means any
body corporate and includes a firm or other association of individuals;
and (b) "director" , in relation to a firm, means a partner in the firm.
CHAP MISCELLANEOUS CHAPTER VII MISCELLANEOUS

Protection of action taken in good faith. 24. Protection of action taken
in good faith.- No suit, prosecution or other legal proceeding shall lie
against any State Government or any officer of the State Government or
any member of the Vigilance Committee for anything which is in good faith
done or intended to be done under this Act.

Jurisdiction of civil courts barred. 25. Jurisdiction of civil courts
barred.- No civil court shall have jurisdiction in respect of any matter
to which any provision of this Act applies and no injunction shall be
granted by any civil court in respect of anything which is done or
intended to be done by or under this Act.

Power to make rules.

26. Power to make rules.- (1) The Central Government may, by notification
in the Official Gazette, make rules for carrying out the provisions of
this Act.

(2) In particular, and without prejudice to the foregoing power, such 561
rules may provide for all or any of the following matters, namely:-- (a)
the authority to which application for the restoration of possesion of
property referred to in sub-section

(4), or sub-section (5), of section 6 is to be

submitted in pursuance of sub-section (6) of that section; (b) the time
within which application for restoration of possession of property is to
be made, under sub-section

(6) of section 6, to the prescribed authority; (c) steps to be taken by
Vigilance Committees under clause

(a) of sub-section (1) of section 14, to ensure the implementation of the
provisions of this Act or of any rule made thereunder; (d) any other
matter which is required to be, or may be, prescribed.

(3) Every rule made by the Central Government under this Act shall be
laid, as soon as may be after it is made, before each House of Parliament
while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any
modification in the rule or both Houses agree that the rule should not be
made, the rule shall thereafter have effect only in such modified form or
be no effect, as the case may be; so, however, that any such modification
or annulment shall be without prejudice to the validity of anything
previously done under that rule.

Repeal and saving.

27. Repeal and saving.- (1) The Bonded Labour System (Abolition)
Ordinance, 1975 (Ord. 17 of 1975) is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under
the Ordinance (including any notification published, direction or
nomination made, power conferred, duty imposed or officer specified)
shall be deemed to have been done or taken under the corresponding
provisions of this Act.