Act 012 of 1920 : Workman's Breach of Contract (Amendment) Act, 1920

Section 1. Short-title

1. Short-title.- This Act may he called the Workman's Breach of Contract (Amendment) Act, 1920.

Section 2. Amendment of section 1, Act XIII of 1859

2. Amendment of section 1, Act XIII of 1859.- (1) Section 1 of the Workman's Breach of Contract Act, 1859 (XIII of 1859) (hereinafter referred to as the said Act) shall he re-numbered sub-section (1) of section 1.

(2) In the said sub-section-

(a) after the words "an advance of money" the words "not exceeding three hundred rupees" shall be inserted; and

(b) the words "and the Magistrate shall thereupon issue" to the end of the section shall he omitted.

(3) To the said section the following sub-sections shall be added, namely:-

"(2) The Magistrate shall at once examine the complainant on oath, and may thereupon dismiss the complaint if in his opinion there is no sufficient ground for proceeding.

(3) If in the opinion of the Magistrate there is sufficient ground for proceeding, he shall issue a summons or warrant, as be may think proper, for bringing before him such artificer, workman or labourer, and shall bear and determine the case."

Section 3. Substitution of new sections for lection 2, Act XIII of 1859

3. Substitution of new sections for lection 2, Act XIII of 1859.- For section 2 of the said Act the following sections shall be substituted, namely:-

"2. (1) Order for repayment of advance or performance of court act.- If it shall be proved to the satisfaction of the Magistrate that such artificer, workman or labourer has received money in advance, not exceeding three hundred rupees, from the complainant on account of any Suelo work, and has wilfully and without lawful or reasonable excuse neglected or refused to perform or get performed the same according to the terms of his contract, the Magistrate may in his discretion either order such artificer, workman or labourer to repay the money advanced, or such part thereof as may be just and proper, within such period and in such instalments, if any, as the Magistrate thinks fit, or order him to perform or get performed such work within such period, not exceeding one year, as the Magistrate may determine and otherwise according to the terms of the contract:

Provided that no such order shall be made-

(a) unless the complaint was brought within three months of the neglect or refusal; or

(b) if it is proved that the complainant has on any previous occasion obtained an order under this sub-section against such artificer, workman or labourer.

Explanation.-Where no time has been fixed for the performance of a contract, neglect may be presumed to have occurred on the expiry of such period as the Magistrate deems to be a reasonable time for the performance thereof.

(2) If such artificer, workman or labourer shah fail to comply with an order made under sub-section (1), the Magistrate may sentence him to imprisonment for a period not exceeding three months, or, if the order be for the repayment of a sum of money, for a period which may extend to three months or until repayment is made, whichever period is shorter:

Provided that, where any instalment has been ordered, no sentence of imprisonment exceeding one month shall be passed for default in payment of any one instalment, and the aggregate of such sentences shall not exceed three months.

(3) The Magistrate may, from time to time, extend the period for repayment of money advanced or for the performance of work, as the case may be, and may vary the instalments:

Provided that no order shall be made under this sub-section extending beyond one year from the date of the order under sub-section (1) the period within which the work is to be performed.

(4) No repayment of any money or order therefor shall deprive the complainant of any civil remedy whether for the recovery of any money advanced and remaining unpaid or otherwise, which he may have otherwise than under this Act.

2A. Inequitable contracts not to be enforced.- The Magistrate may in his discretion refuse to make an order under section 2 where in his opinion the contract in respect of a breach of which the complaint has been made was substantially unfair.

2B. (1) Compensation in false or frivolous or vexations complaints.- If in any proceedings under this Act the Magistrate is of opinion that the complaint was false to the knowledge of the complainant or was frivolous or vexatious, he may in his discretion call upon the complainant forthwith to show cause why he should not pay compensation to the person complained against.

(2) The Magistrate shall consider any cause which such complainant may show, and, if after so doing be is satisfied that the accusation was false to the knowledge of the complainant or was frivolous or vexatious, he may, for reasons to be recorded, direct that compensation not exceeding fifty rupees be paid by the complainant to the person complained against.

(3) Compensation for the payment of which an order is made under sub-section (2) shall be recoverable as if it were a fine, and the Magistrate may, by the order directing payment of the same, further order that in default of payment the complainant shall suffer simple imprisonment for a period which may extend to thirty days or until payment is made, whichever period is shorter."

Section 4. Amendment of section 3, Act XXII of 1859

4. Amendment of section 3, Act XXII of 1859.- In section 3 of the said Act for the words "to be imprisoned with hard labour" the words "to imprisonment" shall be substituted.

Section 5. Substitution of Dew section for section 4, Act XIII of 1859

5. Substitution of Dew section for section 4, Act XIII of 1859.- For section 4 of the said Act the following section shall be substituted, namely:-

"4. To what contracts Act extends and IX of 1872.- In this Act the word "contract" shall extend to all contracts within the meaning of the Indian Contract Act, 1872:

Provided that nothing in this Act shall apply to contracts where, a period having been specified for performance, such period exceeds one year."