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B.A. LL.B. (Five Years) Sem 6 Labour Law II 2021 Oct Question Paper with Solutions

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Labour Law II

Previous Year Question Paper with Solution

B.A. LL.B. (Five Years) · Sem 6

2021 Oct Examination

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Mumbai

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First published on munotes.in on 21 October 2026.

Published by munotes.in, Mumbai.

Model answers written and edited by the munotes.in editorial desk.

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The question paper reproduced here is the paper as set by Karnataka State Law University at the 2021 Oct examination.

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The Paper as Set

The questions in this volume are the questions asked at the 2021 Oct examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.

Duration 3 hours  ·  Total marks 80  ·  16 questions answered

How to use this volume

Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.

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Q1

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(a)Discuss the provisions relating to extinguishment of liability to repay bonded debt.[10]

Answer

For full marks, cover: why the debt had to go (the advance is the chain that holds the bonded labourer; "bonded debt", section 2(d)); the Bonded Labour System (Abolition) Act 1976, Chapter III; section 6: every obligation to repay extinguished (6(1)); no suit or proceeding to recover (6(2)); decrees deemed satisfied (6(3)); attachments vacated and seized movables returned (6(4)); property taken by force restored (6(5)); the prescribed authority's order within thirty days, executable as a civil court decree (6(6), (7)); past execution sales stand, but may be set aside within five years on deposit (6(8)); pending suits dismissed (6(9)); release from civil prison (6(10)); section 7: property freed from mortgage, charge or lien and restored, with mesne profits for delay; section 8: no eviction from the homestead; section 9: no payment on an extinguished debt, three years and fine, refund; the supporting provisions: burden of proof on the creditor (section 15), Vigilance Committees defend suits (section 14(1)(f)), credit for the freed labourer (sections 11, 14(1)(c)), new bonded debt an offence (section 17), failure to restore property (section 19); civil courts barred (section 25); the cases (Bandhua Mukti Morcha, Neeraja Chaudhary); a conclusion.

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Why the debt had to go

The bonded labour system rests on a loan. A poor worker takes an advance, often for a marriage, an illness or a funeral. He then works for the creditor, or his family does, until the debt is repaid. With nominal wages and interest, it never is. The Act defines a "bonded debt" as an advance obtained, or presumed obtained, under the bonded labour system (section 2(d)). Releasing the worker means nothing while the debt survives. So Chapter III of the Bonded Labour System (Abolition) Act 1976 wipes out the debt and everything built on it.

Section 6: the debt is extinguished

  1. The obligation ends (section 6(1)). On the Act's commencement, every obligation of a bonded labourer to repay a bonded debt, or what remained of it, is deemed extinguished.
  2. No recovery (section 6(2)). No suit or other proceeding lies in any civil court or before any other authority to recover a bonded debt.
  3. Decrees satisfied (section 6(3)). A decree or order for recovery passed earlier, and not fully satisfied, is deemed fully satisfied.
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  1. Attachments vacated (section 6(4)). Every attachment for a bonded debt is vacated. Movables seized and held pending sale go back to the labourer.
  2. Property seized by force (section 6(5)). Property of the labourer or his family taken forcibly by a creditor is restored to the person it was taken from.
  3. A quick remedy (section 6(6) and (7)). If restoration is not made within thirty days, the aggrieved person may apply to the prescribed authority. After hearing the creditor, it orders restoration. That order is executed as if made by a civil court.
  4. Past sales (section 6(8)). A sale completed before the Act stands. But within five years the labourer may have it set aside by depositing the sale amount, less what the decree-holder has received.
  5. Pending cases dismissed (section 6(9)). Every pending suit to enforce a bonded obligation, or to recover an advance, stands dismissed.
  6. Freedom from prison (section 6(10)). A bonded labourer held in civil prison for the debt is released at once.
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Sections 7 to 9: what follows from extinction

1. Property freed (section 7). Property mortgaged, charged or pledged for a bonded debt is freed and discharged to that extent. If the creditor holds it, it returns to the labourer. For any delay, the labourer may recover mesne profits through the civil court of the lowest pecuniary jurisdiction.

2. No eviction (section 8). A freed labourer often lives in a hut given as part of the bargain. He cannot be evicted from it. If he is, the Sub-Divisional Executive Magistrate must restore him to possession.

3. No payment on a dead debt (section 9). A creditor may not accept any payment against an extinguished debt. Doing so is punishable with up to three years' imprisonment and a fine. The court may also order him to deposit the money for refund to the labourer.

Provisions that keep the debt dead

  1. Burden of proof (section 15). When a labourer or a Vigilance Committee says a debt is bonded, the creditor must prove it is not.
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  1. Defending suits (section 14(1)(f) and (2)). The Vigilance Committee defends any suit brought against a freed labourer or his family for a debt claimed to be bonded.
  2. Credit to prevent a relapse (sections 11 and 14(1)(c)). The District Magistrate must protect the freed labourer's economic interests so he need not borrow into bondage again. The Committee steers credit from rural banks and co-operatives to him.
  3. New bonded debt is a crime (section 17). Advancing a bonded debt after the Act is punishable with up to three years' imprisonment and a fine up to two thousand rupees.
  4. Failure to restore property (section 19). This is punishable with up to one year's imprisonment, or a fine up to one thousand rupees, or both. From the fine, the labourer receives five rupees for each day of delay.
  5. Civil courts barred (section 25). No civil court has jurisdiction over any matter the Act covers. Nor may it grant an injunction against anything done under the Act.
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The cases

Bandhua Mukti Morcha v. Union of India, AIR 1984 SC 802. Workers in the Faridabad stone quarries were held by debts they could never repay. The Supreme Court ordered their identification and release and enforcement of the Act. It held that the right to live with dignity under Article 21 draws on the Directive Principles.

Neeraja Chaudhary v. State of Madhya Pradesh, AIR 1984 SC 1099. Labourers released from those quarries went home with nothing and were close to starvation. The Court held that release is not enough without rehabilitation, and failure to rehabilitate violates Article 21. Without support, a freed labourer soon borrows into bondage again.

Where the law stands now

The 1976 Act is still in force; no Labour Code repeals it. The Central Sector Scheme for Rehabilitation of Bonded Labourer gives financial help to freed labourers so they need not borrow again.

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Conclusion. Section 6 wipes out every bonded debt, ends suits and decrees, vacates attachments and releases labourers from civil prison. Sections 7 to 9 free mortgaged property, protect the homestead and punish any creditor who takes payment. The burden of proof on the creditor, Vigilance Committees, credit support and new offences keep the debt from returning. Bandhua Mukti Morcha and Neeraja Chaudhary show that extinction must be matched by rehabilitation.

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