Arbitration and Conciliation Act, 1996 Sections 34 and 37 ; The BOCW Act Sections 40 and 62; Interpretation of BOCW Act and Cess Act – This judgment addresses civil appeals arising from arbitral awards under the Arbitration and Conciliation Act, 1996, concerning the interpretation and implementation of ‘The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996’ (BOCW Act) and ‘The Building and Other Construction Workers’ Welfare Cess Act, 1996′ (Cess Act).
The core issue in the appeals filed by National Highways Authority of India (NHAI) is whether the BOCW Act and the Cess Act can be considered ‘subsequent legislation’ in contracts entered into with its contractors.
The Supreme Court delves into the statutory schemes of both Acts, highlighting the delayed implementation despite their enactment in 1996, necessitating judicial intervention for their enforcement.
The Court emphasizes that the constitution of Welfare Boards under the BOCW Act is a prerequisite for the effective implementation of both Acts, and the cess could not be levied or collected before these boards were established.