THE BONDED LABOUR SYSTEM (ABOLITION) ACT, 1976

 
THE BONDED LABOUR SYSTEM (ABOLITION) ACT, 1976 

(ACT NO. 19 OF 1976) 

   

 [9th February, 1976.] 
   
  
 An Act to provide for the abolition of bonded labour system with a view to 
preventing the economic and physical exploitation of the weaker sections of the 
people and for matters connected therewith or incidental thereto. 
  
BE it enacted by Parliament in the Twenty-seventh Year of the Republic of India as 
follows: -- 
  
   

CHAPTER I  

PRELIMINARY 

 
1. Short title, extent and commencement. - (1) This Act may be called the Bonded 
Labour System (Abolition) Act, 1976. 
  
(2) It extends to the whole of India. 
  
(3) It shall be deemed to have come into force on the 25th day of October, 1975. 
 
2.  Definitions. - In this Act, unless the context otherwise requires, -- 
  

 a) "advance” means an advance, whether in cash or in kind, or partly in cash 
or partly in kind, made by one person (hereinafter referred to as the creditor) to 
another person (hereinafter referred to as the debtor);  

  
 (b) "agreement" means an agreement (whether written or oral, partly written 
and partly oral) between a debtor and creditor and includes an agreement 
providing for forced labour, the existence of which is presumed under any 
social custom prevailing in the concerned locality. 

  
Explanation. --The existence of an agreement between the debtor and creditor 
is ordinarily presumed, under the social custom, in relation to the following 
forms of forced labour, namely: -- 

  
Adiyamar, Baramasia, Basahya, Bethu, Bhagela, Cherumar, Garru-galu, Hali, 

Hari, Harwai, Holya, Jana, Jeetha, Kamiya, Khundit-Mundit, Kuthia,             

Lakhari, Munjhi, Mat, Munish system, Nit-Majoor, Paleru, Padiyal, 

Pannayilal, Sagri, Sanji,Sanjawat, Sewak, Sewakia, Seri, Vetti; 

  



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(c) "ascendant” or "descendant", in relation to a person belonging to a 
matriarchal society, means the person who corresponds to such expression in 
accordance with the law of succession in force in such society; 

  
(d) "bonded debt,” means an advance obtained, or presumed to have been 
obtained, by a bonded labourer under, or in pursuance of, the bonded labour 
system; 

  
(e) "bonded labour" means any labour or service rendered under the bonded 
labour system; 

  
(f) "bonded  labourer" means  a labourer who incurs, or has, is presumed to 
have, incurred, a bonded debt;  

  
(g) "bonded  labour system"  means the  system of forced, or partly forced,  
labour under  which a debtor enters, or has, or is presumed to have, entered, 
into an agreement with the creditor to the effect that,-- 

  
(i) in consideration of an advance obtained by him or by  any of  his  
lineal  ascendants  or  descendants (whether or  not  such  advance  is  
evidenced  by  any document) and in consideration of the interest, if 
any, on such advance, or 

  
(ii) in  pursuance  of  any  customary  or  social obligation, or 

  
            (iii) in  pursuance of  an obligation devolving on him by succession, or 

  
(iv) for  any economic  consideration received  by him or  by any of his 
lineal ascendants or descendants, or 

  
(v) by reason of his birth in any particular caste or community, he 

would-- 
  

(1) render,  by himself  or through  any member  of his family, 
or any person dependent on him, labour or service to the 
creditor,  or for  the benefit  of the  creditor, for  a specified  
period  or  for  an  unspecified  period,  either without wages or 
for nominal wages, or 

  
(2) forfeit  the freedom  of employment  or other  means of 
livelihood for a specified period  or  for an unspecified period, 
or 

  
(3) forfeit   the  right  to  move   freely  throughout the territory 
of India, or 

  
(4) forfeit the right to  appropriate  or sell at market value any 
of his property  or product  of his  labour or the labour of a 
member of his  family  or  any  person dependent on him, and 
includes the system of forced, or partly  forced, labour under  



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which  a  surety for  a debtor  enters, or has, or is presumed  to  
have,  entered,  into  an  agreement  with the creditor to the 
effect  that in the event of the failure  of the  debtor  to  repay  
the debt, he would render the bonded labour on behalf of the 
debtor; 

  
      1[Explanation.-- For  the   removal  of  doubts,  it  is  hereby declared that  any 
system  of forced,  or partly  forced labour  under which any  workman being  contract 
labour  as defined in clause (b) of sub-section (1)  of section  2 of  the Contract 
Labour (Regulation and Abolition) Act,  1970  (37  of 1970),  or      an inter-State  
migrant workman as  defined in  clause (e)  of sub-section (1) of section 2 of the  
Inter-State   Migrant  Workmen   (Regulation  of  Employment  and Conditions of  
Service) Act,  1979 (30 of 1979), is required to render labour or  service in  
circumstances of  the nature  mentioned in sub-clause (1)  of this  clause or  is 
subjected  to all  or  any  of  the disabilities referred  to in sub-clauses (2) to (4), is 
"bonded labour system" within the meaning of this clause.] 
  
           (h)  "family",   in  relation  to  a  person,  includes  the ascendant and 
descendant of such person; 
  
           (i) "nominal wages", in relation to any labour, means a wage which is less 
than,-- 
  

(a) the  minimum wages fixed by the Government, in relation to  the 
same  or similar labour, under any law for the time being in force, and 

  
(b) where  no such  minimum wage has been fixed in relation to  any 
form  of labour,  the wages  that  are normally paid,  for the  same or 
similar labour, to the labourers in the same locality; 

  
           (j) "prescribed"  means prescribed  by rules made under this Act. 
 
 3. Act to have overriding effect.-  The provisions  of this  Act shall have  effect  
notwithstanding  anything  inconsistent  therewith contained in  any enactment  other 
than this Act, or in any instrument having effect by virtue of any enactment other than 
this Act. 
  
   

CHAPTER II  

ABOLITION OF BONDED LABOUR SYSTEM 
 

4. Abolition of bonded labour system.- (1) On the commencement of  this Act,  the 
bonded  labour system  shall stand  abolished and every bonded  labourer   shall,  on   
such  commencement,  stand  freed  and discharged from any obligation to render any 
bonded labour. 
  
 (2) After the commencement of this Act, no person shall-- 
  
                                                 
1 Inserted by Act 73 of 1985 



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(a) make  any advance  under, or in pursuance of, the bonded labour system, or 
  

(b) compel  any person  to render any bonded labour or other form of forced 
labour. 

   
5. Agreement, custom, etc., to be void. - On the commencement of this Act, any 
custom or tradition or any contract, agreement or other instrument (whether entered 
into or executed before or after the commencement of this Act), by virtue of which 
any person, or any member of the family or dependant of such person, is required to 
do any work or render any service as a bonded labourer, shall be void and inoperative. 
  

 
CHAPTER III 

EXTINGUISHMENTS OF LIABILITY TO REPAY BONDED DEBT 

   
 6. Liability to repay bonded debt to stand extinguished. - (1) On the commencement 
of this Act, every obligation of a bonded labourer to repay any bonded debt, or such 
part of any bonded debt as remains unsatisfied immediately before such 
commencement, shall be deemed to have been extinguished. 
  
(2) After  the  commencement  of  this  Act,  no  suit  or  other proceeding shall  lie in 
any civil court or before any other authority for the recovery of any bonded debt or 
any part thereof. 
  
(3) Every decree or order for the recovery of bonded debt, passed before the 
commencement of this Act and not fully satisfied before such commencement, shall 
be deemed, on such commencement, to have been fully satisfied. 
  
(4) Every attachment made before the commencement of this Act, for the recovery of 
any bonded debt, shall, on such commencement, stand vacated; and, where, in 
pursuance of such attachment, any movable property of the bonded labourer was 
seized and removed from his custody and kept in the custody of any court or other 
authority pending sale thereof, such movable property shall be restored, as soon as 
may be practicable after such commencement, to the possession of the bonded 
labourer. 
  
(5) Where, before the commencement of this Act, possession of any property 
belonging to a bonded labourer or a member of his family or other dependant was 
forcibly taken over by any creditor for the recovery of any bonded debt, such property 
shall be restored, as soon as may be practicable after such commencement, to the 
possession of the person from whom it was seized. 
  
(6) If restoration of the possession of any property referred to in sub-section  (4) or 
sub-section (5) is not made within thirty days from the commencement of this Act, the 
aggrieved person may, within such time as may be prescribed, apply to the prescribed 
authority for the restoration of the possession of such property and the prescribed 
authority may, after giving the creditor a reasonable opportunity of being heard, direct 
the creditor to restore to the applicant the possession of the concerned  property within  
such  time  as  may  be specified in the order. 



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 (7) An order made by any prescribed authority, under sub-section (6), shall  be 
deemed  to be an order made by a civil court and may be executed by  the court of the 
lowest pecuniary jurisdiction within the local limits of whose jurisdiction the creditor 
voluntarily resides or carries on business or personally works for gain. 
  
(8) For  the avoidance  of doubts,  it is  hereby declared  that, where any  attached 
property  was sold before the commencement of this Act, in  execution of  a decree  or 
order for the recovery of a bonded debt, such sale shall not be affected by any 
provision of this Act: 
  
 Provided that  the bonded labourer, or an agent authorized by him in this  
behalf,  may,  at  any  time  within  five  years  from  such commencement, apply  to 
have  the sale  set aside on his depositing in court, for  payment to  the decree-holder, 
the amount specified in the proclamation of sale, for the recovery of which the sale 
was ordered, less any  amount, as  well as means profits, which may, since the date of 
such proclamation of sale, have been received by the decree-holder. 
  
(9) Where  any suit  or proceeding,  for the  enforcement of  any obligation under  the  
bonded  labour  system,  including  a  suit  or proceeding for  the recovery of any 
advance made to a bonded labourer, is pending  at the  commencement of  this  Act,  
such  suit  or  other proceeding shall, on such commencement, stand dismissed. 
  
(10) On  the commencement  of this Act, every bonded labourer who has been  
detained in  civil prison, whether before or after judgment, shall be released from 
detention forthwith. 
 
7. Property of bonded labourer to  be freed from mortgage, etc.- (1) All  property 
vested  in a  bonded labourer which was, immediately before the  commencement of  
this Act under any mortgage, charge, lien or other  encumbrances in connection with 
any bonded debt shall, in so far as  it is relatable to the bonded debt, stand freed and 
discharged from such  mortgage, charge, lien or other encumbrances, and where any 
such property  was, immediately  before the commencement of this Act, in the  
possession of  the mortgagee or the holder of the charge, lien or encumbrance,  such 
property  shall (except  where it was subject to any other charge), on such 
commencement, be restored to the possession of the bonded labourer. 
  
(2) If any delay  is made in restoring any property, referred to in sub-section  (1), to  
the possession  of the  bonded labourer, such labourer shall be entitled, on and from 
the date of such commencement, to recover  from the  mortgagee or  holder  of  the  
lien,  charge  or encumbrance, such  mesne profits  as may  be determined  by the  
civil court of  the lowest pecuniary jurisdiction within the local limits of whose 
jurisdiction such property is situated. 
  
8. Freed  bonded labourer not to be evicted from homestead, etc.- (1) No  person 
who  has been  freed and discharged under this Act from any obligation  to render any 
bonded labour, shall be evicted from any homestead  or  other  residential  premises  
which  he  was  occupying immediately before  the commencement  of  this  Act  as  
part  of  the consideration for the bonded labour. 
  



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(2) If, after the commencement of  this Act, any such person is evicted by  the creditor  
from  any  homestead  or  other  residential premises, referred  to in sub-section (1), 
the Executive Magistrate in charge of  the Sub-Division within which such homestead 
or residential premises is  situated shall,  as early  as  practicable,  restore  the bonded  
labourer   to  the  possession  of  such  homestead  or  other residential premises. 
 
9. Creditor not to accept payment against extinguished debt.- (1) No creditor shall 
accept any payment against any bonded debt, which has been extinguished  or  
deemed  to  have  been  extinguished  or  fully satisfied by virtue of the provisions of 
this Act. 
  
(2) Whoever contravenes the provisions of sub-section (1), shall be punishable  with 
imprisonment  for a term, which may extend to three years and also with fine. 
  
(3) The  court, convicting  any person under sub-section (2) may, in addition  to the  
penalties which  may be  imposed under  that sub-section, direct  the person  to 
deposit, in court, the amount accepted in contravention  of the  provisions of  sub-
section (1),  within such period as  may be  specified in  the order  for being  refunded 
to the bonded labourer. 
  
 

CHAPTER IV 

IMPLEMENTING AUTHORITIES  

   
 10.  Authorities  who  may  be  specified  for  implementing  the provisions of this 
Act.-  The State  Government may confer such powers and impose such duties on a 
District Magistrate as may be necessary to ensure that  the provisions  of this  Act are 
properly carried out and the District  Magistrate may  specify the officer, subordinate 
to him, who shall exercise all or any of the powers, and perform all or any of the 
duties,  so conferred or imposed and the local limits within which such powers  or  
duties  shall  be  carried  out  by  the  officer  so specified. 
  
11. Duty  of District  Magistrate and  other officers  to  ensure credit.- The District 
Magistrate  authorized by  the State  Government under section  10 and the officer 
specified by the District Magistrate under that  section shall,  as far  as practicable, try 
to promote the welfare of  the freed  bonded labourer  by securing and protecting the 
economic interests of such bonded labourer so that he may not have any occasion or 
reason to contract any further bonded debt. 
 
12. Duty of District  Magistrate and officers authorized by him.- It shall  be the  duty 
of  every District Magistrate and every officer specified by  him under  section 10  to  
inquire  whether,  after  the commencement of  this Act,  any bonded labour system or 
any other form of forced  labour is  being enforced  by, or  on behalf of, any person 
resident within the local  limits of  his jurisdiction  and if,  as a  result of  such inquiry, 
any  person is found to be enforcing the bonded labour system or any  other system  of 
forced  labour, he  shall forthwith take such action as may be necessary to eradicate 
the enforcement of such forced labour. 
 

 



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CHAPTER V 

VIGILANCE COMMITTEES  

   
13. Vigilance  Committees.- (1) Every State  Government shall, by notification in  the  
Official  Gazette,  constitute  such  number  of Vigilance Committees  in each district 
and each Sub-Division as it may think fit. 
  
(2) Each Vigilance Committee, constituted for a district, shall consist of the following 
members, namely: -- 
  

(a) the  District Magistrate,  or a person nominated by him, who shall be the 
Chairman; 

  
(b) three  persons belonging  to  the  Scheduled  Castes  or Scheduled Tribes  
and residing  in the  district, to be nominated by the District Magistrate; 

  
(c) two  social workers,  resident in  the district,  to  be nominated by the 
District Magistrate; 

  
(d) not  more than  three  persons to represent the official or non-official 
agencies in the district connected with rural   development,  to  be  nominated  
by  the  State Government;  
 
(e) one  person  to  represent  the  financial   and  credit institutions in the 
district, to  be  nominated  by the District Magistrate. 

  
(3) Each  Vigilance Committee,  constituted for  a  Sub-Division, shall consist of the 
following members, namely:-- 
  

(a) the  Sub-Divisional Magistrate, or a person nominated by him, who shall 
be the Chairman; 

  
(b) three  persons belonging  to  the  Scheduled  Castes  or Scheduled Tribes  
and residing  in the Sub-Division, to be nominated by the Sub-Divisional 
Magistrate; 

  
(c) two  social workers, resident in the Sub-Division, to be nominated by the 
Sub-Divisional Magistrate; 

  
(d) not more than three persons to represent the official or non-official 
agencies  in  the  Sub-Division  connected with rural  development to be 
nominated by the District Magistrate; 

  
(e) one  person  to  represent  the  financial  and  credit institutions in  the Sub-
Division,  to be  nominated by the Sub-Divisional Magistrate; 

  
           (f) one  officer specified  under section 10 and functioning in the Sub-Division. 
  



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(4) Each Vigilance Committee shall regulate its own procedure and secretarial 
assistance, as may be necessary, shall be provided by-- 
  

(a) the  District Magistrate,  in the  case of  a  Vigilance Committee constituted 
for the district; 

  
(b)  the   Sub-Divisional  Magistrate,  in  the  case  of  a Vigilance Committee 
constituted for the Sub-Division. 

  
(5) No proceeding of  a Vigilance  Committee  shall  be  invalid merely by  reason of  
any  defect  in  the  constitution,  or  in  the proceedings, of the Vigilance Committee. 
  
14. Functions of Vigilance Committees.- (1) The functions of each Vigilance 
Committee shall be,-- 
  

(a)  to  advise  the  District  Magistrate  or  any  officer authorized by  him as  
to the  efforts made, and action taken, to  ensure that the provisions of this 
Act or of any rule made thereunder are properly implemented; 

  
(b) to  provide for the economic and social rehabilitation of the freed bonded 
labourers; 

  
(c) to  co-ordinate the  functions of  rural banks  and  co-operative societies  
with a view to canalizing adequate credit to the freed bonded labourer; 

  
(d) to  keep an  eye on  the number  of  offences  of  which cognizance has 
been taken under this Act; 

  
(e) to  make a  survey as to whether there is any offence of which 
cognizance ought to be taken under this Act; 

  
(f) to  defend any  suit instituted  against a  freed bonded labourer or  a 
member of his family or any other person dependent on  him for the 
recovery of the whole or part of any  bonded debt  or any other debt which is 
claimed by such person to be bonded debt. 

  
(2) A  Vigilance Committee  may authorize one of  its members to  defend a  suit 
against  a freed  bonded labourer  and  the  member  so authorized shall  be deemed,  
for the  purpose of such suit, to be the  authorized agent of the freed bonded labourer. 
  
 15. Burden  of proof.-  Whenever any debt is  claimed by a bonded labourer, or a 
Vigilance Committee, to be a bonded debt, the burden of proof that such debt is not a 
bonded debt shall lie on the creditor. 
  
 

 

CHAPTER VI 

OFFENCES AND PROCEDURE FOR TRIAL  

  



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 16. Punishment for enforcement of bonded labour.- Whoever, after the 
commencement  of this Act, compels any person to render any bonded labour   shall 
be  punishable with  imprisonment for  a term, which may extend to  three   years and  
also with  fine, which  may extend to two thousand rupees. 
  
 17. Punishment for advancement of bonded debt.- Whoever advances, after  the  
commencement  of  this  Act,  any  bonded  debt  shall  be punishable with  
imprisonment for  a term , which may  extend to  three years and also with fine which 
may extend to two thousand rupees. 
  
18. Punishment for extracting bonded labour under the bonded labour system.- 
Whoever enforces,  after the commencement of this Act, any custom,  tradition, 
contract,  agreement or  other instrument,  by virtue of  which any person or any 
member of the family of such person or any  dependant of  such person  is required  to 
render  any service under the  bonded labour  system shall be punishable with 
imprisonment for a  term which  may extend  to three years and also with fine which 
may extend to two thousand rupees; and, out of the fine, if recovered, payment shall  
be made  to the  bonded labourer  at the rate of rupees five for each day for which the 
bonded labour was extracted from him. 
  
 19. Punishment  for omission  or failure to restore possession of property to bonded 
labourers.-  Whoever, being required by this Act to restore any  property to  the 
possession of any bonded labourer, omits or fails to do so, within a period of thirty 
days from the commencement of this  Act, shall  be punishable  with imprisonment 
for a term which may extend  to one year, or with fine which may extend to one 
thousand rupees, or  with both;  and, out  of the  fine, if  recovered, payment shall be  
made to  the bonded  labourer at the rate of rupees five for each day  during which  
possession of the property was not restored to him. 
  
20.  Abetment  to  be  an offence.-  Whoever  abets  any  offence punishable under 
this Act shall, whether or not the offence abetted is committed, be  punishable with  
the same punishment as is provided for the offence, which has been abetted. 
  
Explanation, -- For the purpose of  this Act,  "abetment" has  the meaning assigned to 
it in the Indian Penal Code (46 of 1860).  
   
21. Offences to be tried by Executive Magistrates.- (1) The State Government may  
confer, on  an Executive  Magistrates, the powers of a Judicial Magistrate  of the first 
class or of the second class for the trial of  offences under  this Act; and, on such 
conferment of powers, the Executive  Magistrate, on   whom the powers are so 
conferred, shall be deemed,  for the  purposes of the Code of Criminal Procedure,  
1973 (2 of 1974), to be a Judicial Magistrate of the first class, or of the second class, 
as the case may be. 
   
 (2) An offence under this Act may be tried summarily by a Magistrate. 
  
22. Cognizance of offences.- Every offence under this Act shall be cognizable and 
bail able. 
 



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23. Offences  by companies.- (1) Where  an offence under this Act has been  
committed by  a company,  every person  who, at the time the offence was  
committed, was  in charge of, and was responsible to, the company for the conduct of 
the business of the company, as well as the company, shall  be deemed  to be  guilty 
of  the offence  and shall be liable to be proceeded against and punished accordingly. 
  
(2) Notwithstanding  anything contained in sub-section (1), where any offence  under 
this  Act has been committed by a company and it is proved that  offence has been 
committed with the consent or connivance of, or is  attributable to, any neglect on the 
part of, any  director, manager, secretary or  other  officer  of  the Company, such 
director, manager,  secretary  or  other officer shall be deemed to be guilty of that 
offence and shall be  liable to be proceeded against and punished accordingly. 
  
Explanation.-- For the purposes of this section,-- 
  

(a) "company"  means any  body corporate and includes a firm or other 
association of individuals; and 

  
           (b) "director” in  relation to a firm, means a partner in the firm. 
  
   

CHAPTER VII 

MISCELLANEOUS 

  
24. Protection of action taken in good faith. - No suit, prosecution or other legal 
proceeding shall lie against any  State Government or any officer of the State 
Government or any member of the Vigilance Committee  for anything  which is  in  
good  faith  done  or intended to be done under this Act. 
  
  25. Jurisdiction  of civil  courts barred.-  No civil court shall have jurisdiction  in 
respect  of any matter to which any provision of this Act applies and no injunction 
shall be granted by any civil court in respect  of anything , which is  done or  intended 
to  be done by or under this Act. 
 
26. Power  to make  rules.- (1) The Central  Government  may,  by notification in  the 
Official Gazette, make rules for carrying out the provisions of this Act. 
  
(2) In  particular, and without prejudice to the foregoing power, such rules may 
provide for all or any of the following matters, namely:-- 
  

(a) the authority to  which application for the restoration of possession  of 
property  referred to  in  sub-section (4), or  sub-section  (5),  of  section  6  is  
to  be submitted in  pursuance  of  sub-section  (6)  of  that section; 

  
(b) the  time within  which application  for restoration  of possession of 
property is to be made, under sub-section (6) of section 6, to the prescribed 
authority; 

  



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(c) steps  to be  taken by Vigilance Committees under clause (a) of  sub-
section (1) of section 14, to ensure the implementation of  the provisions of 
this Act or of any rule made thereunder; 

  
           (d) any  other matter  which is  required to  be, or may be, prescribed. 
  
 (3) Every rule made by the Central Government  under this  Act shall be  laid, as  
soon as may be after it is made, before each House of Parliament  while it   is  in 
session, for a total period of thirty days which  may be  comprised  in  one  session  or  
in  two  or  more successive  sessions,  and  if,  before  the  expiry  of  the  session 
immediately  following   the  session   or  the   successive  sessions aforesaid, both 
Houses agree in making any modification in the rule or both Houses  agree that  the 
rule  should not  be made, the rule shall thereafter have  effect only in such modified 
form or be no effect, as 
 the case  may be; so, however, that any such modification or annulment shall be 
without prejudice to the validity of anything previously done under that rule. 
  
   
27. Repeal  and saving.- (1) The Bonded Labour System (Abolition) Ordinance, 1975 
(Ord. 17 of 1975) is hereby repealed. 
  
(2) Notwithstanding such repeal, anything done or any action taken under the 
Ordinance  (including any notification published, direction or nomination made, 
power conferred, duty imposed or officer specified) shall be deemed to have been 
done or taken under the corresponding provisions of this Act.