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SOHAIL & CO.: The Bonded Labour System [Abolition] Act, 1976

Object of the Act

An Act to provide for the abolition of bonded labour system with a view to prevent the economic and physical exploitation of the weaker sections of the people and for matters connected therewith or incidental thereto

Bonded labourer - Who is?

Bonded labourer

A labourer who incurs, or has, or is presumed to have,incurred a bonded dept.


Liability of Repay Bonded debt to Stand Extinguish

  • No suit or proceedings shall lie in Civil Court or other authorities
  • No decree will be valid or executable.
  • Property belonging to bonded labourer shall be restored.


Abolition of bonded labour system

  • The bonded labour system shall stand abolished and every bonded labourer shall stand free and discharged from any obligation to render any bonded labour
  • No person shall
    - make any advance under the bonded labour system or
    - compel any person to render any bonded labour or other form of forced labour.


Free Bonded Labourer not to be evicted from Homestead

  • Which he was occupying either homestead or residential premises.
  • The Executive Magistrate shall get the possession restored


Creditor not to accept payment against extinguished debt


Property of Bonded Labour to be freed from Mortgage

Mortgageee will restore the property and if delayed will be liable for mesne profit.


Vigilance Committee

Vigilance Committee

To be constituted by every State Government by a Notification



Sec. Offence Punishment
Sec. 9(2) Acceptance of payment of extinguished debt Imprisonment upto 3 years and with fine.
Sec.16 Compelling any person to render bonded labour Imprisonment upto 3 years and also with fine upto Rs.2,000.
Sec.17 For advancement of Bonded Debt Imprisonment upto 3 years and also with fine upto Rs. 2000
Sec.18 Extracted bonded labour under Bonded Labour System Imprisonment upto 3 years and also with fine upto Rs.2,000 payable to bonded labour @Rs.5 for each day of bonded labour out of fine collected.
Sec.19 Omission or failure to restore possession of property Imprisonment upto one year or fine upto Rs.1,000 fine to be paid @Rs.5 for each day of possession out of fine collected.
Sec.20 Abetment of offence Punishment as provided for particular offence.