JAMIA MILLIA ISLAMIA

Faculty of Law

Project

“Abolition of Bonded Labour in

India”.

Law and Poverty.

Submitted to : Mr. Rasheed CA

Submitted by: MD MODASSIR

BA.LLB (Regular), 4th Semester

Batch: 2019-2024

Student id no. 201903798

Roll no. - 33
 ACKNOWLEDGEMENT

Primarily I would thank God for being able to complete this project with success. Then I
would like to thank my LAW AND POVERTY Teacher Mr. Rasheed CA, SIR , whose
valuable guidance has been the ones that helped me patch this project and make it full proof
success his suggestions and his instructions has served as the major contributor towards the
completion of the project.

Then I would like to thank my parents, friends, Books and various online resources who have
helped me with their valuable suggestions and guidance has been helpful in various phases of
the completion of the project.

Last but not the least I would like to thank my classmates who have helped me a lot.
 Abolition of Bonded Labour in India

Bonded labour is the most widely spread form of slavery and yet it is also ironically the least
known form of enslaving humans in recent years. Bonded labour has been very well grained
into the traditions of our ancestors. In the ancient times, bonded labour was traced down from
the feudal system ad that of caste hierarchy. People were categorized into groups of four,
namely, (i) the Brahmins consisted of people who were priests, scholars, teachers and
researchers, (ii) the Kshatriyas included persons coming from the families of rulers, warriors
and administrators, (iii) the Vaishyas were the traders, merchants, and artisans, (iv) the
Shudras were the lower class men of this category and were mostly labours, workers and
service providers. Although India has come a long way from its ancient times and has
statutory legislations- Bonded Labour System (Abolition) Act, 1976, which have been
established it still remains to be a prevalent practice in modern day India.

The concept of bonded labour is prevalent mostly among the people belonging to the lower
caste, indigenous persons, minorities and migrant workers. It occurs when a person’s labour is
demanded in return of payment of loan. This term ‘bonded labour’ has been recognized as a
custom of sorts where the relationship between the employer and the employee is established
on the basis of unsettled and disputed payments. This entails more benefit towards the
employer rather than to the employee. The term ‘bonded labour’ has been defined by the
National Commission on Labour as “labour which remains in bondage for a specific period
for the debt incurred”. The Commissioner for Scheduled Castes and Scheduled Tribes
explained the term bonded labour in its 24th report as “persons who are forced to work for the
creditors for the loan incurred either without wage or on nominal wage”.

Bonded labour is of many types but not all are considered forced, although most forced labour
possesses the essence of being bonded to someone. The most typical manifestation of a
bonded labour in India is that a worker- usually an adult man- takes a loan from a zamindaar
or from his employer for the purpose of sustaining his family with it. To repay this loan he is
obliged to work for the lender. This man is then tricked to work for his creditor for little to no
payment for his labour. Because of his meagre income, the worker continues to borrow money
for his creditor thus increasing the amount to be paid, which then increases the time period of
working under the creditor. This loan is also passed down to the upcoming generations of the
family if it is not repaid, in many cases from a father down to his son. Female labourers also
fall into the
trap due to debt. They are usually also sexually abused by their creditors during their time in
bondage.1

Bonded labour system on the other hand refers to the relationship between a creditor and a
debtor who obtains loan owing to the economic repercussions and compulsions faced by him
and his family on a day to day basis. The debtor here agrees to mortgage his service or the
services of his family members for a specified or unspecified period of time. He takes this
loan with the condition to abide by the terms dictated by the creditor and also his labour will
either earn him no remuneration or some remuneration which is less than the minimum wage
in the market.2

The 1976 Bonded Labour (Abolition) Act defines ‘bonded labour system’ as “the system of
forced labour under which a debtor enters into an agreement with the creditor that he would
render service to him either by himself or through any member of his family or any person
dependent on him, for a specified or unspecified period, either without wages or for nominal
wages, in consideration of loan or any other economic consideration obtained by him or any
of his ascendants, or in pursuance of any social obligation, or in pursuance of any obligation
devolving on him by succession”3.

The reason as to why bonded labour is prevalent varies from economic causes, social
sufferings, and religious arguments in the lives of these people. Major cause of bonded labour
is the discrimination of people on the basis of caste and status. Vast poverty and inequality,
the inability to find work and livelihood, no alternate option of small scale loans for urban and
rural areas, natural calamities meagre income also the discrimination on the part of the
government to modify the status quo also are causes to why a person falls into the trap of debt
bondage or bonded labour. The National Human Rights Commission (NHRC) exposes the
fact that in twenty eight representative districts across India, there were not any programs put
forth by the government to improve food security and right to live with dignity. In 2001,
NHRC presented

1
Bonded Labour in India, available at:
https://www.researchgate.net/publication/323770111_Bonded_Labour_in_India
https://www.researchgate.net/publication/323770111_Bonded_Labour_in_India (Last modified march,2018),
(Visited on 3rd April,2020).
2
Bonded Labour: Concept, Causes and other Details, available at:
http://www.yourarticlelibrary.com/society/indian-society/bonded-labour-concept-causes-and-other-details/39314
(Visited on 4th April, 2020).
3
THE BONDED LABOUR SYSTEM (ABOLITION) ACT, 1976, (ACT NO. 19 OF 1976).
its report on bonded labour; “bonded labour has been prevalent due to the lack of sincere
political will and adequate global strategy which requires strong political dedication.4”

Bonded labour system goes against many rights offered to human beings by the Constitution
of India. Characteristics of the bonded labour system include the existence of creditor- debtor
relationship and also the loss of freedom of a bonded labour in many ways. A bonded labour
loses the freedom to earn minimum wage regarding a planned employment as per the ‘The
Minimum Wage Act, 1948’.
1948’. The loss of freedom for employment or alternative employment
opportunities in order to earn a decent livelihood as the labours are prohibited to work
elsewhere by their creditors. They can’t move or migrate from one part of the country to
another. They suffer the loss of freedom to sell any products in the market or even the labour
of any of the members of the family dependent upon the labour.

The Constitution of India provides basic rights to a person and freedom to them which are
violated through the system of bonded labour. Article 21 and Article 23 of the Constitution of
India deal with the fundamental rights that a person has which are majorly violated by the
unfortunate system of bonded labour. Article 39 and Article 41-
41-43 of the Directive Principles
of State Policy of the Constitution of India are although not enforceable by law but are
irrefutable for the purpose of governance.

Article 21 of the Constitution of India states that; “No person shall be deprived of his life or
law.”5 This article safeguards
personal liberty except according to a procedure established by law.”
the liberties of human lives from exploitation. It is also part of the basic structure of the
Constitution of India and cannot be amended. Seeing as the concept of bonded labour system
violates the right of a person to live a life of dignity barricades that person from the liberty to
choose his option of employment, this article is the most important safeguard against it. As it
secure the right to life, right to personal liberty and the right to live with dignity.

Article 23 of the Constitution of India states that; “Prohibition of traffic in human beings
and forced labour-

4
Bonded Labour in India, available at:
https://www.researchgate.net/publication/323770111_Bonded_Labour_in_India
https://www.researchgate.net/publication/323770111_Bonded_Labour_in_India (Last modified march, 2018),
(Visited on 3rd April, 2020).
5
M.P.Jain, Indian Constitutional Law (LexisNexis Butterworth’s, Wadhwa, Nagpur, 6th edn, 2012).
(1) Traffic in human beings and begar and other similar forms of forced labour are
prohibited and any contravention of this provision shall be an offence punishable in
accordance with law.

(2) Nothing in this article shall prevent the State from imposing compulsory service for public
purpose, and in imposing such service the State shall not make any discrimination on grounds
only of religion, race, caste or class or any of them.”6

As per Article 23 of the Indian Constitution, traffic in human beings and other forms of forced
labour are prohibited. Based on this constitutional provision, the Government of India passed
The Bonded Labour System (Abolition) Act, 1976. In this context, the Supreme Court of
India deliberated in the following words – “We are, therefore, of the view that when a person
provides labour of service to another for remuneration which is less than the minimum wage,
the labour or service provided by him clearly falls within the scope and ambit of the words
“forced labour” under Article 23.”7

Alongside the constitutional provisions safeguarding the rights of labourers there are other
statutory legislations to support them. The major law governing the practice of bonded labour
is The Bonded Labour System (Abolition) Act 1976. In addition to this, there are a few more
legislations in consonance with this major law in India such as Contract Labour (Regulation
and Abolition) Act 1970, Minimum Wages Act 1948 and the Inter-State Migrant Workmen
(Regulation of Employment and Conditions of Service) Act, 1979 and even the Indian Penal
Code 1860.8 In 2013, the Criminal Law (Amendment) Act introduced sections 370 and 370A
into the Indian Penal Code (IPC), which criminalised anyone involved in the process of
trafficking someone — including recruiting, transporting and transfers, by any means.9

The Bonded Labour System Abolition Act 1976 aims to shut down the practice of bonded
labour system in the country. The Act also highlights the need to rehabilitate bonded labourers
and ensures that they are not pushed into such labour again. The Act also punishes offences

6
Ibid.
7
Bonded Labour: Concept, Causes and other Details, available at:
http://www.yourarticlelibrary.com/society/indian-society/bonded-labour-concept-causes-and-other-details/39314
(Visited on 4th April, 2020).
8
Laws related to bonded labour in India, available at:
at: https://blog.ipleaders.in/bonded-labour-laws/
(Visited on 4th April, 2020).
which include enforcing labour, advancing bonded debt, extracting bonded labour, and not
restoring property to freed bonded labour.

1. All the bonded labourers are freed and discharged from all the obligations to render
their bonded labour.

2. All of the customs, traditions, contracts, agreements or any instruments by virtue of

which a person (or any member of the family) is required to render bonded labour to
someone will now be deemed as void.

3. Every obligation of a bonded labourer to repay any bonded debt shall be deemed to be
extinguished.

4. All the decrees for recovery of bonded labour debt which was not fully satisfied shall
be deemed as fully satisfied after the commencement of the Act.

5. Every property of a bonded labourer which was removed from his possession or
forcible taken from him shall be restored to him.

6. Every bonded labourer who has been detained in Civil Prison shall be released.

7. Freed bonded labourers shall not be evicted from their homestead.10

The Bonded Labour System (Abolition) Act 1976 prescribes imprisonment for a term up to 3
years as well as a fine up to Rs. 2000/-. This punishment is for whoever compels a person to
render their service under bonded labour and whoever advancing the bonded debt. Every
offence under the Act is cognizable and bail able. Section 16 of the act prescribes the
punishment for bonded labour. Punishment for enforcement of bonded labour.- Whoever,
after the commencement of this Act, compels any person to render any bonded labour
shall be

(Visited on 4th April, 2020).

10
Laws related to bonded labour in India, available at:
at: https://blog.ipleaders.in/bonded-labour-laws/
punishable with imprisonment for a term, which may extend to three years and also with fine,
which may extend to two thousand rupees.11

Judgements-

In the case of Neerja Chaudhury v. State of Madhya Pradesh12

The Supreme Court ruled – “It is the plainest requirement of Articles 21 and 23 of the
Constitution that bonded labourers must be identified and released and on release, they must
be suitably rehabilitated… Any failure of action on the part of the State Government[s] in
implementing the provisions of [the Bonded Labour System (Abolition) Act] would be the
clearest violation of Article 21 and Article 23 of the Constitution.”

As mentioned above, there are a few constitutional provisions that safeguard the system of
bonded labour from being practised. In this case, the Apex Court did very well by relating the
issue of bonded labour system with the person’s fundamental right enshrined in Article 21 of
the Constitution and gave a clear thrust to the State to implement Article 21 and Article 23 of
the Constitution.

Also, in the case of People’s Union for Democratic Rights v. Union of India13

The Supreme Court of India delivered the judgement stating – “Where a person provides
labour or service to another for remuneration which is less than minimum wage, the labour or
service provided by him clearly falls within the scope and ambit of the word `forced
labour’…” As seen, the Court has tried to expand the scope of forced labour and protect the
rights of citizens time and again.

11
THE BONDED LABOUR SYSTEM (ABOLITION) ACT, 1976, (ACT NO. 19 OF 1976).
12
Neerja Chaudhury v. State of Madhya Pradesh; (1984) 3 SCC 243, 255.
13
People’s Union for Democratic Rights v. Union of India; (1982) 3 SCC 235, 259-260.
 Conclusion-

Bonded labour in India leads to loss of freedom of an individual. The rights taken away from
these people are claimed to be inhumane in some circumstances as people work as bonded
labours for periods lasting till their death. Although the country has ensured the protection of
the rights of these labourers, it still hasn’t been implemented in ways that can be helpful. The
politicians of the country have shown little interest in sorting these matters and not many are
aware of rights that they hold. It all comes back to the fact that the lack of seriousness shown
towards the poor sections of the society. The vulnerability of the poor is always neglected and
thus they resort to the cycle of debt bondage. In the year 2019 a report was presented to the
Lok Sabha by the Ministry Of Labour and Employment in which there were a total of 2,
63,715 lakh identified bonded labourers across five states of India. Out of which the highest
sum belonged to the state of Karnataka; 66,281 thousand bonded labourers. It isn’t that the
government hasn’t taken measures to release them but the fact that it still remain to be
prevalent in the society.
 BIBLOGRAPHY

ONLINE RESOURCES

Bonded Labour in India, available at:

https://www.researchgate.net/publication/323770111_Bonded_Labour_in_India
https://www.researchgate.net/publication/323770111_Bonded_Labour_in_India (Last
modified march,2018), (Visited on 3rd April,2020).

Bonded Labour: Concept, Causes and other Details, available at:

http://www.yourarticlelibrary.com/society/indian-society/bonded-labour-concept-causes-and-
other-details/39314 (Visited on 4th April, 2020).

Laws related to bonded labour in India, available at:

at: https://blog.ipleaders.in/bonded-labour-
laws/

(Visited on 4th April, 2020).

Laws related to bonded labour in India, available at:

at: https://blog.ipleaders.in/bonded-labour-
laws/

(Visited on 4th April, 2020).

BOOKS AND LEGISLATION

M.P.Jain, Indian Constitutional Law (LexisNexis Butterworth’s, Wadhwa, Nagpur, 6th edn,
2012).

THE BONDED LABOUR SYSTEM (ABOLITION) ACT, 1976, (ACT NO. 19 OF 1976).

LANDMARK CASES

Neerja Chaudhury v. State of Madhya Pradesh; (1984) 3 SCC 243, 255.

People’s Union for Democratic Rights v. Union of India; (1982) 3 SCC 235, 259-260.