Applicability of Contract Labour (Regulation & Abolition) Act,1970 to Sub Contractors & sub-sub contractors

I appreciate the question one of my follower had raised regarding applicability of Contract Labour (Regulation & Abolition) Act, 1970 to Sub Contractors & sub-sub contractors.

Under  Section 2 clause (c) of the Contract Labour Act (Regulation & Abolition) Act, 1970 defines "contractor" in relation to an establishment, to mean "a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and included a "sub-contractor." 

Section 12 sub-section (1) then proceeds to enact that with effect from such date as the appropriate Government may, by notification in the official Gazette, appoint, no contractor to whom this Act applies, shall undertake or execute any work through contract labour except under and in accordance with a ‘licence issued in that behalf by the licensing officer. It is therefore clear that not only a contractor but also a sub-contractor who comes within the definition of the term 'contractor' in section 2 clause (c) is bound to obtain a licence under section 12 sub-section (1) before contractor or sub-contractor can undertake or execute any work through contract labour.

Thus incase where sub- contractors, have-not cared to obtain such licence and yet they have undertaken and are executing any  portions of the of work entrusted to them by the contractors, through work men employed by them either directly through contractor (or sub contractor) . This is clearly in violation of the prohibition enacted in section 12 subsection (1). 

In fact, if sub- contractors undertake or execute any work through contract labour without obtaining a licence under section 12 sub- section (1), they would be guilty of a criminal offence punishable under section 23 deals with the provisions of contravention regarding employment of contract labour and Sections 24 and 25 are the penal provisions with regard to the offences contemplated under the Act.