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BSNL Can Recover From Contractor but Wage Payment Order Requires No Interference: Calcutta HC

Case Law Details

TaxGuru Citation
2026 taxguru.in 14520
Case Name
Bharat Sanchar Nigam Limited Vs. Regional Labour Commissioner (C) & Ors. (Calcutta High Court)
Date of Judgement/Order
Only available for paid members
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Bharat Sanchar Nigam Limited Vs. Regional Labour Commissioner (C) & Ors. (Calcutta High Court)

Summary: The Calcutta High Court disposed of BSNL’s writ petition challenging an order dated 27 October 2025 passed by the Authority under the Payment of Wages Act, 1936 and the Regional Labour Commissioner (C), Asansol. Under the impugned direction, if the contractor, M/S General Security Information Service, failed to make the payment/deposit within 60 days, BSNL as principal employer was required to pay the actual deducted amount of ₹8,51,508 plus one and a half times the principal amount as compensation, aggregating to ₹21,28,770.

BSNL contended that no further payment could be required from it because it had already paid the contractor. In its supplementary affidavit, BSNL stated that the contractor had raised 208 invoices aggregating to ₹3,32,02,602, including GST of ₹50,64,803, and that payments aggregating to ₹2,57,26,718.53 had already been released. It further stated that the GST component had been withheld because the contractor had not filed GSTR-1 and GSTR-3B and the amount was not reflected in BSNL’s GSTR-2A, resulting in inability to take input tax credit for FY 2022-23.

The petitioner relied upon Chandi Prasad Uniyal & Ors v. State of Uttarakhand & Ors., (2012) 8 SCC 417. The Court noted that the authority had directed the principal employer to make payment if the contractor failed to do so. It further recorded BSNL’s contention that payment had already been made to the contractor, who appeared to have failed to discharge his liability under the agreement.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 21,137

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