#contractor liability

The Kerala High Court quashed corruption proceedings against a contractor, holding that absence of administrative sanction and changes in market rates alone cannot prove dishonest intent under the Prevention of Corruption Act. This clarifies that prosecutorial reliance on procedural lapses without evidence of mala fide at the time of agreement violates the core requirement of mens rea under Section 13(1)(d)(ii), protecting contractors from speculative charges.

The Bombay High Court has ruled that MSEDCL must pay Rs. 4 lakh compensation under its administrative circulars to the widow of a deceased contractor worker killed in an electrocution, clarifying that 'outsider' status under the policy extends to workers of third-party contractors engaged by the utility. This sets a critical precedent for humanitarian relief obligations of public utilities beyond statutory employer liability, impacting thousands of contract workers across Maharashtra’s power sector.

The Bombay High Court has ruled that under Section 21 of the Contract Labour Act, principal employers cannot evade statutory wage obligations merely by outsourcing labour. Even when contractors fail to pay minimum wages, the principal employer remains secondarily liable - ensuring workers’ rights are protected regardless of contractual arrangements. This reinforces the Act’s protective intent and expands accountability across supply chains.

Delhi High Court denies anticipatory bail to directors of contractor firm after death from unguarded excavation, holding contractual duties non-delegable and criminal liability intact despite insolvency.