M/S Bharat Sanchar Nigam Limited vs. The Regional Labour Commissioner (C) And Anr
Held
The High Court found that BSNL had indeed paid the contractor, but the contractor failed to discharge its liability to the workers. The Court upheld the authority's order making BSNL liable in case of contractor default, stating BSNL was at liberty to recover the amount from the contractor.
Facts
Bharat Sanchar Nigam Limited (BSNL), as a principal employer, challenged an order under the Payment of Wages Act, 1936, directing it to pay workers if its contractor failed to do so. BSNL contended it had already paid the contractor, but withheld the GST component of Rs. 50,64,803/- due to the contractor's non-filing of GSTR-1 and GSTR-3B, preventing BSNL from claiming input tax credit.
Key Issues
Whether a principal employer, having paid the contractor, remains liable to pay workers under the Payment of Wages Act, 1936, if the contractor defaults. Also, the implication of withholding GST due to the contractor's non-compliance with GST return filings (GSTR-1, GSTR-3B) on the principal employer's input tax credit (GSTR-2A).
AI-generated summary — verify with the full judgment below
1
2026 Item No.12 Court No. 30 skg WPA 13892 of 2026
M/s. Bharat Sanchar Nigam Limited Vs. The Regional Labour Commissioner (C) & Ors.
Mr. Anil Kr. Gupta, Adv. Mr. Yogesh Kr. Sharma, Adv.
… for the petitioner
Mr. Raj Kr. Gaurisaria, Adv. Mr. Debashish Basak, Adv. … for respondent no.1 Mr. Kuntal Banerjee, Adv.
…for respondent no.12
The writ application has been preferred challenging an order dated 27th October, 2025, passed by the Authority under the Payment of Wages Act, 1936 and the Regional Labour Commissioner (C), Asansol, wherein the petitioner is aggrieved by the direction of the authority concerned, which is as follows : “In case contractor M/S General Security Information Service failed to make the payment/deposit within 60(sixty) days then Principal Employer, BSNL will pay the actual deducted amount of Rs.8,51,508/(Rupees eight lakhs fifty-one thousand five hundred and eight only) plus one and a half times of the principal amount as compensation to the workers. The total amount of Rs.21,28,770/- (Rupees twenty-one lakhs twenty eight thousand seven hundr
The judgment continues below.
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