2026 LLR 130
MADRAS HIGH COURT
Hon'ble Mr. D. Bharatha Chakravarthy, J.
WP No. 26487/2013, Dt/– 4-12-2025
Salem Mandala Manuneddhi Amaipuchara Mattrum Kattumana Thozhirchangam
v.
The Government of Tamil Nadu and Ors.
CODE ON SOCIAL SECURITY, 2020 – Building and Other Construction Workers' Welfare Cess – Framing of new schemes – Under the BOCW Cess Act, cess is imposed on persons carrying on building and construction activities and out of the fund, welfare scheme is framed for the benefit of construction workers whereby compensation and a death benefits are granted – An allegation was made against the trade union that it made falls claims of death resulting in the welfare board granting moneys – Individual order were passed suspending the operations of the trade union – Hence, the writ petition – Held, the Cess Act is substituted under the Code on Social Security, 2020 – A new scheme may be framed or the existing scheme itself may be continued – It is for the welfare board which is administering the fund to verify each and every claim that is made properly before releasing the fund – The impugned order of suspension of the activity of the union shall be treated as inoperative – The authorities may take any action in accordance with law – Writ petition is disposed of. Paras 4 and 5
For Petitioner: Mr. M. Selvam, Advocate.
For Respondents: Mr. A.M. Ayyadurai, Govt. Advocate.
IMPORTANT POINTS
ORDER
D. Bharatha Chakravarthy, J.–1. This Writ Petition is filed to call for the records of the third respondent pertaining to the proceedings in Na.Ka. No. 1030 of 2012, dated 23-06-2013 and quash the same.
2. Under the Building and Other Construction Workers' Welfare Cess Act, 1996, cess is imposed on the persons carrying on building and construction activities and out of the fund, Welfare Scheme is framed for the benefit of the construction workers, whereby, the compensation and death benefits, etc., are being granted. While so, the allegation against the trade union is that it made false claims of death resulting in the Welfare Board granting monies on account of these false claims duly certified by the office bearers of the trade union. After noting the same, individual orders were passed suspending the operations of the trade union by the Labour Officer in charge the scheme. In some cases, other actions, such as removal of labour representatives were also taken. Challenging the same, this Writ Petition is filed and an interim order is also granted.
3. When the matter came up for hearing, the learned Counsel for the petitioner also places on record the judgment, dated 30-08-2013 made in W.P. (MD) No. 7495 of 2013, whereby, this Court took into account the fact that the suspension was long pending and after the order of interim stay granted by this Court, the trade union functioned as usual and recording the same, the Writ Petition was disposed of. The learned Counsel for the petitioner seeks for similar orders.
4. However, it must be seen that the very Act itself is now substituted under the Code on Social Security, 2020. A new scheme may be framed or the existing scheme itself may be continued. It is for the Welfare Board which is administering the fund to verify each and every claim that is made before releasing the fund. Since the impugned order in this Writ Petition is only in the nature of temporary suspension of operation, it may not be justifiable to continue the same even after 13 years as we are now in the year 2025. As such, the impugned order of suspension of the activity of this union shall be treated as inoperative and need not be continued. However, it is for the authorities to take any action in accordance with law for any false claim that is made or any charge that they are going to level against anybody and pass final orders. As far as this trade union is concerned, in view of the new Code coming into force, it is for the Welfare Board, its authorities and the Labour Officer to decide whether they are still going to take the help of the present trade union or not in accordance with law.
5. With the above observations, this Writ Petition is disposed of. There shall be no order as to costs.