V. Sujatha, J.
1. As the issue involved in both these cases is one and the same, these writ petitions are decided by way of a common order.
(a). W.P. NO. 5414 of 2017:
The present writ petition came to be filed under Article 226 of the Constitution of India seeking the following relief:
"...to issue Writ or direction more particularly in the nature of Writ of Mandamus declaring the action of the respondents in 1) issuing Memo No. D/3549/2016-1 dated 22.10.2016, withdrawing the schemes notified vide G.O.MS. No. 3, dt.04.02.2016, 2) in diverting the funds of the 3rd respondent Board to other departments through various proceedings 3) in not initiating welfare schemes to the building and other construction workers and issuing Letter No. 121/1F/ADMN,DI&IF/2016, Dt.16.11.2016, through which directions have been given to transfer of balances from 3rd respondent Board Account to the P.D Accounts and 4) not taking action on the representation of the Petitioners union dt.7.11.2016 and 8.11.2016, as illegal, arbitrary and contrary to the Judgement of the Hon'ble Apex Court passed in W.P.(Civil) 318/2006 and contrary to Article 14 and 21 of the Constitution of India and consequently set aside the Memo No. D/3549/2016-1 dated 22.10.2016, by directing the respondents to take steps to return the amount diverted from the 3rd respondent Board to various departments through various proceedings and also for initiating welfare schemes to building and other construction workers..."
(b). W.P. NO. 40599 of 2016:
The present writ petition came to be filed under Article 226 of the Constitution of India seeking the following relief:
"...to issue an appropriate Writ, Order or Direction more particularly one in the nature of Writ of Mandamus to declare the action of the 3rd respondent in issuing the impugned Memo No. D/3549/2016-1, dt.22.10.2016, withdrawing the schemes notified vide G.O.Ms. No. 3, dt.4.2.2016 as being illegal, arbitrary, unconstitutional and unilateral and consequently set aside the same and to grant..."
2. The petitioners union (A.P. Building and other Construction Workers Union), represented by its President, filed the present writ petition. The case of the petitioner is that the petitioners' union is a registered union vide No. H-69 under the Indian Trade Union Act, 1926 and is having 60,000 members consisting of building and other construction workers, who are one of the most numerous and vulnerable segments of the unorganized labour in India. The work is also characterized by its casual nature, temporary relationship between employer and employee, uncertain working hours, lack of basic amenities and inadequacy of welfare facilities. In the absence of which, the requisite information regarding the number and nature of accidents is also not forthcoming.
3. Although, the provisions of certain Central Acts are applicable to the building and other constructions workers, yet, a need has been felt for a comprehensive Central Legislation for regulation of their safety, health, welfare and service conditions. As a part of the same, the building and other construction workers (Regulation of Employment and Conditions of Service) Act, 1996 was passed by the Parliament, which was intended to benefit the unorganized workers in the Construction sector. The parliament has also passed the Building and other Construction Workers Welfare Cess Act, 1996, for the purpose of levy and collection of cess as per which the Section 3 of the said act envisages that there shall be levied and collected a cess for the purpose of the Building and Other Construction Workers Act, 1996, at such rate not exceeding 2%, but not less that 1% of the cost of construction incurred by an employer, as the central government may specify for him from time to time.
4. In this connection, a Welfare Board has been constituted in every state so as to provide and monitor social security schemes and welfare measures for the benefit of building and other construction workers. For the said purpose, it has been considered appropriate to bring in a compressive legislation by suitably amplifying the provisions of the Building and other Construction Workers (Regulation of Employment and Conditions of Service) Bill, 1988, which was introduced in the Rajya Sabha on 30th Day of December, 1988 and it has also been considered necessary to levy a cess on the cost of construction incurred by the employees on the building and other construction workers for ensuring sufficient funds for the welfare boards to undertake the social security schemes and welfare measures.
5. As the respondents have failed to discharge their statutory duties under the provisions of the Act, a writ petition was filed vide W.P.(Civil)No. 318/2006 before the Hon'ble Supreme Court of India against several states. Though the State of Andhra Pradesh has constituted a welfare board, have registered workers and establishments in accordance with the provisions of the Act, notified the prescribed authorities for collection and disbursement of cess under the Cess Act and have collected some cess and in spite of collecting the same cess have failed to distribute the amount to the registered applicants in furtherance to implementation of the scheme framed.
6. The Hon'ble Supreme Court of India, by observing the situation that the states are not holding meetings of the Welfare Board as required i.e., at least once in two months, to discharge their statutory functions, and to conduct audit by the Comptroller and Audit General (CAG) for the funds placed at disposal of the concerned authority. The Hon'ble Supreme Court has issued general directions on 07.02.2012 which reads as follows:
"a) All the State Welfare Boards shall be subjected to audit by the CAG within two months from today. All the States, Union Territories and the State Boards to initiate the process and ensure its completion under the provisions of Section 27 of the Act.
b) Every Welfare Board shall, without fail, hold its meeting at least once in two months and submit its minutes, as well as the action taken and progress reports in regard to the framing and implementation of the schemes and disbursement of funds to the eligible applicants, to the Secretary (labour) of that Government quarterly.
c) The funds available with the Welfare Boards which have not been disbursed or are not likely to be disbursed within a short period should be properly invested with the nationalized banks only. Funds available with the Welfare Boards shall not be utilized by the State for any other head of expenditure of the State Government, etc,."
7. The further case of the petitioner is that the 3rd respondent Board came into existence with effect from 30.04.2007 and has collected a sum of Rs. 60/-from the construction workers towards subscription charges. In spite of there being an order by the Hon'ble Supreme Court in the year 2012, the 3rd respondent has not framed any scheme till the year 2016, except introducing some schemes. The important and relevant schemes are framed vide G.O.Ms. No. 3, dated 04.02.2016, LET & F (Lab-I) department which are as follows:
a). The fatal accident relief through which relief to the dependent of the worker who died in the fatal accident is an amount of Rs. 5,00,000/-.
b). The disability relief through which relief to the worker who suffered disability in the accident is an amount up to Rs. 50,000/-
c). The natural death relief through which the dependants for natural death of worker will get up to Rs. 60,000/-
d). Some minor schemes also introduced like marriage gift, maternity benefit, hospitalization relief, funeral expenses and pension scheme.
8. But, in spite of implementing the said scheme, the 1st respondent issued impugned memo No. D/3549/2016-1, dated 22.10.2016 through which the schemes notified vide G.O.Ms. No. 3, dated 04.02.2016 were withdrawn from 2nd October, 2016 in view of introducing of Chandranna Bima Scheme. According to the memo, the 1st respondent has issued G.O.Ms. No. 54 of Labour Employment, Training and Factories (LAB-1) department dated 30.09.2016, for introducing Chandranna Bima Scheme to provide assistance to the believed families and workers through insurance in respect of 2 crore towards unorganized workers in the age group of 18-70 years in A.P. with effect from 02.10.2016.
9. The benefits given in Chandranna Bima Scheme are reducing the amounts given in G.O.Ms. No. 3, like permanent partial disability up to Rs. 4,62,000/-from 5,00,000/-and natural death relief from Rs. 60,000/-to Rs. 30,000/-. The said memo also issued directions to all the officers in the state, directing them not to entertain the claims for the relief mentioned in G.O.Ms. No. 3, dated 02.10.2016. As the said memo is causing hardship to the building and other construction workers, they submitted a representation requesting the respondents to cancel the memo immediately and also to divert the funds of 3rd respondent on 08.11.2016. In spite of the same, the 3rd respondent issued proceedings dated 30th September, 2016 for release of an amount of Rs. 64 crores as an advance to the Oriental Insurance Company Ltd., Visakhapatnam towards Chandranna Bima Scheme premium and as well as issued proceedings dated 19.10.2016, for releasing of an amount of Rs. 60 crores towards Life Insurance Corporation of India towards premium at a rate of Rs. 100/-covering a further 60 lakh workers and further vide proceedings dated 30th September, 2016 for release of an amount of Rs. 110 crores to the L.I.C. towards premium.
10. The respondents have also issued G.O.Ms. No. 79, dated 06.07.2016 for releasing an amount of Rs. 20 crores for supply of infant baby care kits. The respondents also issued a letter dated 16.11.2016, for transfer of the balances in all accounts of various agencies in Government department to the P.D accounts which has also mentioned the fact that the 3rd respondent board is having total an amount of Rs. 826,67,91,867/-. As such, it is clear that the respondents are going to transfer the amounts lying in the 3rd respondent Board to the public deposit account. All the diversions of the amounts from the nationalized banks to other department is in clear violation of the orders of Hon'ble Supreme Court of India and also loss to the building and other construction workers as it does not yield any interest etc. It is the duty of the 3rd respondent board to initiate welfare schemes to the workers more particularly schemes like education, health and pension etc. In fact, the 3rd respondent board has not initiated any education policy to the workers, though the Hon'ble Apex Court clearly mentioned the word Education Policy in its order dated 07.02.2012.
11. Duly explaining all these lapses, the petitioners' union has submitted representations to the respondents on 07.11.2016 and 08.11.2016, which are pending for consideration.
12. The 3rd respondent has filed a detailed counter stating that with a view to provide uniform Social Security Measure to all categories of Un-organized workers, Chandranna Bima Scheme was notified by the Government of Andhra Pradesh and the Building and Other Constructions Workers (BOC) have also been given an opportunity to enrol themselves to avail the benefits therein. But the BOC workers are already getting similar benefits under the 3rd respondent board welfare schemes. Therefore, in order to avoid the duplication of benefits, between the 3rd respondent board welfare schemes and the Chandranna Bima Scheme, the 3rd respondent with the approval of the Hon'ble Chairman of A.P.B&OCWW Board, issued the memo No. D/3549/2016-1, dated 22.10.2016.
13. But, however, as the benefits in the Chandranna Bima Scheme are slightly lesser than the board schemes, the 3rd respondent have issued another memo dated 15.02.2017 in supersession of the impugned memo No. D//3549/2016-1 and continued the benefits to the BOC workers. Therefore, the impugned memo is infructuous as another memo No. D/3549/2016-1, dated 15.02.2017 has been issued in supersession of the impugned memo.
14. The counter affidavit further states that the board funds have not been diverted to any other department so far. But some amounts have been provided as a loan to the Chandranna Bima and A.P. Transport Drivers Social Security Schemes with a condition to repay the amount to the Board. The 3rd respondent has already requested the 1st respondent to payback the said loans vide letter D/701/2015, dated 13.10.2016 and letter No. D/3549/2016, dated 19.05.2017. It is further stated that the amount of Rs. 64 crores given as a loan to oriental Insurance Company, Rs. 170 crores to LIC towards premium for Chandranna Bima have been released from 3rd respondent as loan amounts subject to the repayment and the said amounts will be reimbursed shortly to the board. It is also stated that as per the Government orders vide G.O.Ms. No. 36, dated 17.06.2016 of LET & F(Lab-I) Department, about Rs. 6,08,51,650/-has been released towards publicity of Chandranna Bima Scheme subject to the repayment to the Board, since the Government has directed the Board to extend the loan towards publicity of the above scheme as the BOC workers are also benefited under the scheme.
15. It has also been stated in the counter that the fund of Rs. 20 crores for supply of infant baby care kits has not been released so far and that though the Finance Department vide Lr. No. 121/IF/ADMN,DI&IF/2016, dated 16.11.2016 requested the 3rd respondent to transfer the surplus funds of the Board to the Public Deposit Account, the 3rd respondent vide Lr. No. B/2720/2014, dated 18.11.2016 has not agreed to the said proposals and had not transferred the funds to the Public Deposit Account. In fact, all the surplus funds of the 3rd respondents Board are being invested in the Nationalized Commercial Banks only as per the directions of Hon'ble Supreme Court in the W.P.(Civil)No. 318/2006. It is further stated that the official board account is also being maintained in a Nationalized Commercial Bank i.e., Andhra Bank, Mogalrajpuram Branch, Vijayawada as per rule 33-E(1) under A.P.BOCWW Rules, 1999.
16. The 3rd respondent has further stated that the welfare schemes of the construction workers are no way effected by with this small portion of loans and the benefit amounts under various welfare schemes for BOC Workers have been recently increased as detailed below:
|
Sl.No. |
Name of the Scheme |
Relief Amount
Rs. |
Enhanced Relief
Amount Rs. |
|
1 |
Marriage Gift |
10,000/- |
20,000/- |
|
2 |
Maternity Benefit |
10,000/- |
20,000/- |
|
3 |
Fatal Accidental Relief |
2,00,000/- |
5,00,000/- |
|
4 |
Permanent Disability Relief |
2,00,000/- |
5,00,000/- |
|
5 |
Natural Death |
30,000/- |
60,000/- |
|
6 |
Temporary Disability |
1,500/- per month up to 3 months |
3,000/- per month up to 3 months |
|
7 |
Funeral Expenditure |
10,000/- |
20,000/- |
It is further stated that the 3rd Respondent board is making all necessary efforts, to secure the welfare of the BOC Workers by the above enhancement and also contemplating to introduce new welfare schemes.
17. On a perusal of G.O.Ms. No. 3, dated 04.02.2016, which deals with implementation of welfare schemes by the Andhra Pradesh Buildings and Other Construction Workers Welfare Board and welfare schemes to provide relief in case of death or disability of registered building workers, revised as per which certain guidelines are issued which reads as follows:
|
Sl.No. |
Scheme |
Existing (Rs.) |
Revised(Rs.) |
|
1 |
Accidental Death |
2,00,000/- |
5,00,000/- |
|
2 |
Permanent Disability |
2,00,000/- |
5,00,000/- |
|
3 |
Natural Death Relief |
30,000/- |
60,000/- |
18. As per the memo dated 22.10.2016, the benefits under the Chandranna Bima Scheme are as follows:
"1. In order to avoid duplication of benefits under two schemes, the Board schemes notified vide G.O.Ms. No. 3, dated 04.02.2016 is withdrawn from 2nd October, 2016 pending approval of the next board meeting. Accordingly, all the officers in the State are directed not to entertain the claims for the relief under Accidental Death, Total Disability, Partial Disability and Natural Death, w.e.f. 02.10.2016.
But the claims relating to the Accidental Death, Total Disability, Partial Disability and Natural Death occurred before 02.10.2016 can be entertained as per G.O.Ms. No. 03 even if such claims are received after 02.10.2016."
19. But, thereafter, the Government issued one more memo vide memo No. D/3549/2016-1, dated 15.02.2017, in super session of the memo dated 22.10.2016 in order to continue to pay the amount of relief as fixed in the schemes of the board, to all the registered BOC workers who are enrolled under Chandranna Bima Scheme, the following instructions are issued:
|
Sl.No. |
Name of the Relief |
Amount to be claimed under Chandranna Bima Rs. |
Amount to be claimed from A.P.B&OCWW Board Rs. |
Total Amount of Relief Rs. |
|
1 |
2 |
3 |
4 |
5 |
|
1. |
Accidental Death |
5,00,000/- |
Nil |
5,00,000/- |
|
2. |
Total Disability |
5,00,000/- |
Nil |
5,00,000/- |
|
3. |
Permanent Partial Disability |
Up to
3,62,500/- |
Up to 1,37,500/- |
Up to
5,00,000/- |
|
4. |
Natural Death |
30,000/- |
30,000/- |
60,000/- |
|
5. |
Funeral Expenses |
Nil |
20,000/- |
20,000/- |
1. All the Registered Building and Other Construction Workers who are enrolled under Chandranna Bima are entitled the reliefs as detailed below:
20. As per the said G.O., it is clear that there is a partial increase in the relief by including Permanent Partial Disability up to Rs. 5,00,000/-and also funeral expenses to a tune of Rs. 20,000/-, which is beneficial to the members of the petitioners' union.
21. In view of the above facts and circumstances and in view of the contents of the counter affidavit, this Court, instead of going into the merits of the case, feels it appropriate to dispose of these writ petitioner by directing the respondent No. 3, to dispose of the representations made by the petitioner dated 07.11.2016 and 08.11.2016 and pass appropriate orders in accordance with law, within a period of three (3) months from the date of receipt of a copy of this order.
22. Accordingly, these writ petitions are disposed of. There shall be no order as to costs.
Consequently, miscellaneous applications, pending, if any, shall also stand closed.