Agreement of indemnity by labour contractor

Agreement of indemnity by labour contractor

(Under Sec. 12(2) of the Workmen's Compensation Act, 1923)

AGREEMENT OF INDEMNITY made at.........this...........day of........2010.between Mr XYZ of……………..residing at………hereinafter referred to as the Contractor (which

expression shall be deemed to include his heirs, executors and administra tors) of the one part and M/s. ABC Co- Limited a Company registered under the Companies Act, 1956 having its registered office at ... hereinafter referred to as the Company (which expression shall be deemed to include its successors and assigns) of the other part. Whereas,

(1) The Company is carrying on the business of builders and developers of the properties.

(2)The Company requires in the work of any construction, specialized labour for the work of such construction and other structures.

(3) The Company has entered into a contract with the Contractor for the supply of the workmen or labour for carrying out and completing concrete structural work consisting of laying concrete pillars, concrete floor slab etc. as per the approved plans of the building which is proposed to be con structed on the plot of and No. situated at....................?

(4)Although the required labour will be engaged by the Contractor and as between the Contractor and the workmen engaged the Contractor will be the employer and as such he will be responsible for payment of their wages and other dues and not the Company under the terms of said contract referred to above still under the provisions of the Workmen's Compensation Act, 1923. the Company will be considered as the principal and will be held liable for any compensation becoming payable due to any accident happen ing to any such workman in the course of his employment in the said work of construction.

(5)The Company has therefore requested the Contractor to execute this agreement indemnifying the Company against any loss, damages, cost charges or expenses required to be paid by the Company to any such workman supplied by the Contractor as compensation under the said Act and which the Contractor had agreed to do.

Now it is agreed by and between the parties hereto that in pursuance of the premises the Contractor doth hereby agree and covenant with the Company that in the event of any workman or labour engaged by the Contractor on any basis that is full time/part time or casual, meeting with any accident arising out of or in the course of his employment as aforesaid resulting in any injury, partial disablement or total disablement of what soever nature to him or her and the Company as the principal employee being held liable to pay any amount of compensation by the authority under the said Act, the Contractor shall indemnify and keep indemnified the Company against such liability for compensation and also for all costs charges and expenses if any incurred by the Company in defending the claim for compensation by such worker or his legal representative and shall pay the same to the Company on demand failing which the Company will be entitled to recover the same that is the amount of the compensation awarded and the cost of charges and expenses referred to above from the Contractor by any due process of law and/or by deducting the same from the moneys payable to the Contractor under the said contract above referred to or otherwise.

AND IT IS FURTHER AGREED between the parties that in the event of any accident occurring as aforesaid and claim for compensation being made by the worker or any body else entitled to make the same under the said Act of 1923, the Company will be entitled to engage any lawyer or lawyers and defend the claim till the last stage of judicial process and the Contractor will be liable to pay the Company all cost charges and expenses reasonably incurred by the Company in that behalf and the amount of such costs charges and expenses incurred and demanded by the Company shall be binding on him and he shall not be entitled to dispute the same.

IN WITNESS WHEREOF the parties have put their respective hands the day and year first hereinabove written.

Signed by the within-named Contractor

Mr

In the presence of

Signed for and on behalf of the ABC Co. Ltd.

By its Managing Director duly authorised due to so

In the presence of