Vol. 10 · pages 111–115
As Member of the Governor-General's Executive Council, 1942–46
This text was extracted automatically from the official PDF of Dr. Babasaheb Ambedkar: Writings and Speeches, so it may contain small errors. Always check the original page before quoting.
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94 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
a sort of injury upon the employers. There again, Sir, my
statement did not satisfy them, and I have thought it best to
give them the satisfaction by introducing this clause. As will
be seen, a limit has been placed of rupees fifteen lakhs upon
the balance on the fund, and I think this amendment will be
accepted by them in the spirit in which it is intended, namely,
to appease those who feel jealous about the Government’s power
of taxation. Sir, I move.
* * *
* Mr. President (The Honourable Sir Abdur Rahim):
Amendment moved:
“ That in sub-clause (2) of clause 9 of the Bill after the word
‘fails’ occurring in the second line the words ‘after due notice’
be inserted.”
The Honourable Dr. B. R. Ambedkar : I appreciate the
force of the necessity of giving some notice, but I would like to
inform the Honourable Member that there is a provision for notice,
although that provision does not appear in the Bill itself. He
will realize that the important words in the body of clause 9 are
‘in accordance with the scheme’. If my Honourable friend were
to turn to clause 9—I am sorry that is the reason why he has
moved this amendment—and see the terms of the scheme itself, I
assure him that he will find there is a clause—which at present
is clause 1 ( viii) (a) of the draft scheme—which provides for 15
days notice. I think my Honourable friend on this information
will withdraw his amendment.
* * *
†Mr. President (The Honourable Sir Abdur Rahim):
Amendment moved :
“ That in sub-clause (2) of clause 9 of the Bill after the word
‘ punishable ’ occurring in the fourth line the words ‘ after thirty
days of grace from the due date of payment’ be inserted.”
The Honourable Dr. B. R. Ambedkar : Sir, I rise
to oppose the amendment. I do not see any necessity for
conceding the point which my Honourable friend is trying
to make. As I pointed out to the House, we have already
made a provision for notice, which is a period of 15
* Legislative Assembly Debates (Central), Vol. Ill, 13th August 1943, p. 713.
† Ibid. p. 713.
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THE WAR INJURIES (COMPENSATION INSURANCE) BILL
days, and I do not understand why my learned friend should
contend for an additional privilege which will extend a further
period for a recal citrant employer. If we had not provided for
notice in our scheme, I could have well understood the justice of
a claim for a period of grace. But if my learned friend will allow
me to say so I really see no distinction or it is rather a distinction,
without difference, between period of notice and period of grace.
Mr. Hooseinbhoy A. Lalljee : Sir, I think the request which
my Honourable friend, Mr. Abdur Rasheed Choudhury, made was
a very fair one………. After all is said and done, in business life
one has got to make arrangements and when we are bringing
in so many people, I do feel that it will not matter very much if
15 days notice and 15 days grace period is allowed. I like the word
‘grace’ rather than the word ‘notice’ in all 30 days for the simple
reason that grace 15 days is a thing which is absolutely a thing
which the Government can give in their grace. Therefore I think
in all fairness he will not be led by friends who believe that we
in India are more dishonest than others in the world at large.
The Honourable Dr. B. R. Ambedkar: I am prepared to
allow them fifteen days grace in the scheme, Sir.
* * *
* Mr. President (The Honourable Sir Abdur Rahim): The
question is :
“ That to sub-clause (1) of clause 11 of the Bill the following
proviso be added :
‘Provided that no payment from the Fund shall be made in
discharge of any liability of the Crown to pay compensation to
workmen employed by it ’.”
The motion was adopted.
The Honourable Dr. B. R. Ambcdkar : Sir, I move :
“ That for sub-clause (3) of clause 11 of the Bill, the following
be substituted :
‘(3) If when all payments which have to be made out of the
Fund have been defrayed, any balance remains in the Fund,
the balance shall be constituted into a Fund to be utilised and
administered by the Central Government for the benefit of
workmen ’.”
As I pointed out, the original position when the Bill was introduced
was that the balance was to be utilised for general purposes of
Government and was to merge in the general revenues of the
* Legislative Assembly Debates (Central), Vol. Ill, 13th August 1943, pp. 714-15.
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96 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
Government. The Select Committee altered that clause and
provided that the balance, if any, should go to the employers who
have contributed to this fund, in proportion to their contribution.
The amendment which I am moving is an amendment which is,
if I may say so, a midway house between the two positions. It
suggests that the fund shall not be utilised by the Government
for its general purposes, nor shall it be returned to the employer,
but it shall be treated as a sort of trust fund to be utilised
and administered by the Central Government for the benefit of
workmen. I thought that this was a very reasonable compromise
and that the whole House would accept it without demur. But I
find that there are still some in the House who are not satisfied
with the position outlined in this amendment. The grounds
on which I justify the amendment standing in my name are,
in the first instance, these. I think it will not be denied that
whatever contributions the employers may make to the insurance
fund, it will be treated by the Finance Department as revenue
which will be revenue for which credit will be given by the
Finance Department. It is really revenue which would in the
ordinary circumstances go to the Government of India in the
form of income-tax and excess profits tax. Therefore I have no
hesitation in submitting that a very large bulk of this fund is
really intended that they would get and utilise what is theirs, I
do not think there was anything very serious to challenge that
position. But as I stated, I have receded from that position, and
I am prepared to allow this fund to be treated, not as general
revenues, but as a credit fund to be utilised for the benefit of
workmen. The argument which I have heard in the lobby and
which seems to have prevailed upon some Honourable Members
who are not satisfied with the position-taken here, appears to me
to be this. They seem to think that this is the thin end of the
wedge, that the Government is really establishing a precedent
for making a levy on the industry for the benefit of labour. I
do want to disabuse the minds of Members who entertain that
sort of fear. I have assured them before this, that Government
has no intention of making unfair use of this clause by taxing
an industry with the object of raising a fund for purposes for
which it is not mainly required ; and I would also like to assure
Honourable Members who entertain that kind of fear that it is
unnecessary for Government to seek or to make any clandestine
attempt to establish a precedent. Government has ample
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THE WAR INJURIES (COMPENSATION INSURANCE) BILL
power and there are precedents which have been laid down already
by laws, both here and in England, whereby it is possible for
the State to impose a special cess for the benefit of labour. We
have got in this country the coal cess and the coke cess, which
is a levy on industry and which is utilised for the purposes of
the industry or those who are being served by that industry. In
England we have a case in the Coal Mines Act whereby a specific
levy is made on the industry ; the fund collected by the levy is
kept aside for the purposes of labour welfare. Therefore I do
want to assure Honourable Members that there is no intention
to attempt in a clandestine manner to establish a precedent.
Our intention is to support labour and I do not understand why
many employers who have always exhibited such kind interest
in supporting schemes for the welfare of workmen serving them
should in any way hesitate to accept the amendment which I
am moving. Sir, I move.
* * *
* The Honourable Dr. B.R. Ambedkar : Sir, the point made
by my Honourable friend, Mr. Chapman-Mortimer seems to be this.
He says that we are changing our purpose. Originally the fund
was intended to be used for the purpose of paying compensation.
We now propose to use the balance of it for welfare. No doubt this
is a change of purpose but I still maintain that there is nothing
improper in that. If I understood him correctly, the position of
Mr. Mortimer seems to be this. He seems to be following what
I must concede is a well established principle in the budgetary
arrangement, namely, that when money has been sanctioned by
the legislature for a particular purpose it ought not to be spent
for another service not included within that purpose. I entirely
agree but that is a matter which relates to executive action. I do
not propose to use the fund by executive action but it is because
I do not wish to be guilty of any impropriety that I have come
to the house for asking it to be guilty of any impropriety that
I have come to the House for asking its sanction for allowing
the balance to be used for some other purpose which the House
entirely agrees to be a beneficial purpose. I, therefore, submit
that there is no impropriety in changing the purpose inasmuch
as we are asking for the legislative sanction of this House for
the change of purpose.
* Legislative Assembly Debates (Central), Vol. III, 13th August 1943, p. 718.
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98 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
Then, the point has been raised that the word ‘welfare’ is an
omnibus word, I agree that it is an omnibus word and I do not
know if I am in a position to specify items which will be included in
the term “welfare” on which there can be expected to be unanimity
in this House. I shall, therefore, not venture to particularise what
would come under the term “welfare”. But I would say this to those
Honourable Members who do not know what is meant by “welfare”
as well as to those Honourable Members who think that Government
ought not to be entrusted with a responsibility for administering
this Fund that they will realise that the matter, with all this, is
still left in the hands of the House. The House will have many
more opportunities on various occasions to raise this question as to
how this money is to be utilised and I am sure many Honourable
Members who know what is “welfare” or who have ideas on it will
use that opportunity to inform Government as to how that money
would be utilised. Sir, I think the house will be well advised in
accepting my amendment.
* * *
* Mr. President (The Honourable Sir Abdur Rahim): The
question is:
“ That to sub-clause (1) of clause 3 of the Bill, the following
proviso be added :
* Provided that where an employer has taken out a policy of
insurance as required by sub-section (1) of section 9 and has made
all payments by way of premium thereon which are subsequently due
from him in accordance with the provisions of the Scheme, or whereby
the provisions of the sub-section (2) of section 12 the employer is
not required to insure, the Central Government shall assume and
discharge on bahalf of the employer the employer’s liability to pay
compensation under this sub-section ’.”
The motion was adopted.
The Honourable Dr. B. R. Ambedkar : Sir I move :
“ That to clause 3 of the Bill the following new sub-clause be added :
‘ (3) This section shall be binding on the Crown ’.”
I have already explained that we are now seeking to make the
Crown statutorily liable for the provisions of this Bill. With these
remarks, I move.
* * *
†Mr. President (The Honourable Sir Abdur Rahim): Amendment
moved:
“ That in sub-clause (1) of clause 13 of the Bill, part (b) be omitted.”
* Legislative Assembly Debates (Central), Vol. Ill, 13th August 1943, p. 719.
† Ibid., p. 721.