The Bonded Labour System (Abolition) Act, 1976

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INDEX
The Bonded Labour System (Abolition) Act, 1976
Section Particulars Page
CH.I PRELIMINARY
1. Short title, extent and commencement. 3
2. Definitions. 3
3. Ac t to hav e overridin g effect. 5

CH.II ABOLITION OF BONDED LABOUR SYSTEM
4. Abolition of bonded labour system. 5
5. Agreement , custom , etc. , to be void 5

CH.III EXTINGUISHMENT OFLIABILITYTO REP A YBONDED DEBT
6. Liability to repay bonded debt to stand extinguished. 5
7. Propert y of bonde d laboure r to be freed
fro m mortgage , etc. 7
8. Free d bonde d laboure r no t to be evicted
from homestead, etc.

7
9. Credito r no t to accep t paymen t agains t extinguishe d debt. 7

CH.IV IMPLEMENTING AUTHORITIES
10. Authorities who may be specified for implementing
the provisions of this Act. 8
11. Duty of District Magistrate and other
officers to ensure credit. 8
12 . Dut y of Distric t Magistrat e an d officer s authorise d by him. 8

CH.V VIGILANCE COMMITTEES
13. Vigilance Committees. 8
14. Functions of Vigilance Committees. 9
15 . Burde n of pr oof. 10

CH.VI OFFENCES AND PROCEDURE FOR TRIAL
16. Punishment for enforcement of bonded labour. 10
17. Punishment for advancement of bonded debt. 10
18. Punishment for extracting bonded labour under 10
the bonded labour system. 10
19. Punishment for omission or failure to restore possession
of property to bonded labourers. 10
20. Abetment to be an offence. 11

21. Offences to be tried by Executive Magistrates. 11
22 . Cognizanc e of offences . 11
23. Offences by companies. 11

CH. VII MISCELLANEOUS

24. Protection of action taken in good faith. 11
25. Jurisdiction of civil courts barred. 12
26 . Powe r to mak e rules. 12
27. Repeal and saving. 12

THE BONDED LABOUR SYSTEM
(ABOLITION) ACT, 19761
(ACT NO. 19 OF 1976)

An Act
[9th February, 1976.]
to provide for the abolition of bonded labour syste m with a view to
preventing the economic and physical exploitation o f the weaker sections of
the people and for matters connected therewith or i ncidental thereto.
BE it enacted by Parliament in the Twenty-seventh Year of the Republic of
India as follows:
CHAPTER I
PRELIMINARY
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.
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 t o as the debtor);
(b) “agreement” means an agreement (whether written or oral, partly written
and partly oral) between a debtor and creditor, 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 a nd 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;
(c) “ascendant” or “descendant”, in relation to a p erson belonging to a
matriarchal society, means the person who correspon ds to such
expression in accordance with the law of succession in force in such society;
(d) “bonded debt” means an advance obtained, or pre sumed to have been
obtained, by a bonded labourer under, or in pursuan ce of, the bonded
labour system;

1 Received the assent of the President on 9.2.1976 & pub. in Gaz. of India, Extra., Pt. II,
S.1, dt. 9.2.1976, pp. 135-44

(e) “bonded labour” means any labour or service ren dered 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 forc ed, or partly forced,
labour under which a debtor enters, or has, or is p resumed 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 su ch 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 mean s of livelihood for a
specified period or for an unspecified period, or
(3) forfeit the right to move freely throughout the territory of India, or
(4) forfeit the right to appropriate or sell at mar ket 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 p resumed to have, entered, into an
agreement with the creditor to the effect that in t he event of the failure of the
debtor to repay the debt, he would render the bonded labour on behalf of the debtor;
2[Explanation.— For the removal of doubts, it is hereby declared th at 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 sect ion 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 sect ion 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

2 Added by Act 73 of 1985, S.2.

The Bonded Labour System (Abolition) Act, 1976 1 5

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 sys tem” 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, mea ns a wage which is less
than,—
(a) the minimum wages fixed by the Government, in r elation 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 re lation 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 und er this Act.
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 b y virtue of any enactment other
than this Act.

CHAPTER II
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 discha rged from any obligation to
render any bonded labour.
(2) After the commencement of this Act, no person s hall—
(a) make any advance under, or in pursuance of, the bonded labour system,
or
(b) compel any person to render any bonded labour o r other form of forced
labour.
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 commen cement 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.

CHAPTER III
EXTINGUISHMENT OFLIABILITYTO REP A YBONDED DEBT
6 . Liability to repay bonded debt to stand extingu ished.— (1) On the
commencement of this Act, every obligation of a bon ded labourer to repay any

bonded debt, or such part of any bonded debt as rem ains unsatisfied immediately
before such commencement, shall be deemed to have b een extinguished.
(2) After the commencement of this Act, no suit or other proceeding shall
lie in any civil court or before any other authorit y for the recovery of any bonded
debt or any part thereof.
(3) Every decree or order for the recovery of bonde d 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 o f this Act, for the
recovery of any bonded debt, shall, on such commenc ement, 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, pos session 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 rec overy 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 se ized.
(6) If restoration of the possession of any propert y 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 t he applicant the possession of the
concerned property within such time as may be specified in the order.
(7) An order made by any prescribed authority, unde r 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 decla red 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 suc h commencement, apply to
have the sale set aside on his depositing in court, for payment to the decree-
holder, the amount specified in the proclamation of sale, for the recovery of
which the sale was ordered, less any amount, as wel l as mesne profits, which
may, since the date of such proclamation of sale, h ave been received by the
decree-holder.

The Bonded Labour System (Abolition) Act, 1976 1 7

(9) Where any suit or proceeding, for the enforceme nt 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 a t 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 af ter judgment, shall be released
from detention forthwith.
7 . Property of bonded labourer to be freed from mo rtgage, 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, imme diately before the
commencement of this Act, in the possession of the mortgagee or the holder of the
charge, lien or incumbrance, such property shall (e xcept where it was subject to
any other charge), on such commencement, be restore d 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 wi thin the local limits of whose
jurisdiction such property is situated.
8 . Freed bonded labourer not to be evicted from ho mestead, 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 lab our.
(2) If, after the commencement of this Act, any suc h person is evicted by
the creditor from any homestead or other residentia l 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.
9 . Creditor not to accept payment against extingui shed debt.— (1) No
creditor shall accept any payment against any bonde d 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-secti on (1), shall be
punishable with imprisonment for a term which may e xtend to three years and
also with fine.

(3) The court, convicting any person under sub-sect ion (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.

CHAPTER IV
IMPLEMENTINGAUTHORITIES
10. Authorities who may be specified for implementi ng 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 ens ure that the provisions of this
Act are properly carried out and the District Magis trate 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 office r so specified.
11. Duty of District Magistrate and other officers to ensure credit.— The
District Magistrate authorised by the State Governm ent 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 free d bonded labourer by securing
and protecting the economic interests of such bonde d labourer so that he may not
have any occasion or reason to contract any further bonded debt.
12. Duty of District Magistrate and officers author ised by him.— It shall be
the duty of every District Magistrate and every off icer specified by him under
section 10 to inquire whether, after the commenceme nt 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 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.

CHAPTER V
VIGILANCECOMMITTEES
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 dis trict, 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

The Bonded Labour System (Abolition) Act, 1976 1 9

and residing in the district, to be nominated by the District Magistrate;
(c) two social workers, resident in the district, t o be nominated by the
District Magistrate;
(d) not more than three persons to represent the of ficial 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 credi t 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 nomi nated 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-Divisio n, to be nominated by
the Sub-Divisional Magistrate;
(d) not more than three persons to represent the of ficial or non-official
agencies in the Sub-Division connected with rural d evelopment to be
nominated by the District Magistrate;
(e) one person to represent the financial and credi t institutions in the Sub-
Division, to be nominated by the Sub-Divisional Magistrate;
(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 Vigil ance 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.
14. Functions of Vigilance Committees.— (1) The functions of each Vigilance
Committee shall be,—
(a) to advise the District Magistrate or any office r 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 rehabili tation 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 whi ch cognizance has
been taken under this Act;
(e) to make a survey as to whether there is any off ence of which cognizance
ought to be taken under this Act;
(f) to defend any suit instituted against a freed b onded 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.
15. Burden of proof.— Whenever any debt is claimed by a bonded labourer, or
a Vigilance Committee, to be a bonded debt, the bur den of proof that such debt is
not a bonded debt shall lie on the creditor.

CHAPTER VI OFFENCESAND
PROCEDURE FOR TRIAL
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 ma y extend to three years and
also with fine which may extend to two thousand rupees.
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 als o with fine which may extend
to two thousand rupees.
18. Punishment for extracting bonded labour under t he bonded labour
system.— Whoever enforces, after the commencement of this Ac t, 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 depe ndant 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 th ree 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.
19. Punishment for omission or failure to restore p ossession 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 commencement of this Act, shall be punishable with

The Bonded Labour System (Abolition) Act, 1976 1 11

imprisonment for a term which may extend to one yea r, or with fine which may
extend to one thousand rupees, or with both; and, o ut 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.
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).
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 clas s for the trial of offences under
this Act; and, on such conferment of powers, the Ex ecutive Magistrate, on whom
the powers are so conferred, shall be deemed, for t he 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.
(2) An offence under this Act may be tried summaril y by a Magistrate.
22. Cognizance of offences.— Every offence under this Act shall be cognizable
and bailable.
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 compa ny for the conduct of the
business of the company, as well as the company, sh all 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-secti on (1), where any
offence under this Act has been committed by a comp any 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 par tner in the firm.

CHAPTER VII
MISCELLANEOUS
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.

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.
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 for egoing power, such rules
may provide for all or any of the following matters, namely—
(a) the authority to which application for the rest oration of possession of
property referred to in sub-section (4), or sub-sec tion (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 ma y 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 bot h 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, t hat any such modification or
annulment shall be without prejudice to the validit y of anything previously done
under that rule.
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 a ny 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.

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