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- Contractors took leaves and tobacco from Dewan and employed workmen for manufacturing bidis. After bidis were manufactured, the contractors took them back from the workmen and delivered them to Dewan.
- The workmen took the leaves home and cut them there, however the process of actual rolling by filling the leaves with tobacco took place in what was called contractors’ factories.
- The contractors kept no attendance register for the workmen, there was no condition for their coming and going at fixed hours, nor were they bound to come for work every day. Sometimes they informed the contractors if they wanted to be absent and some times they did not. The contractors said that they could take no action if the workmen absented themselves even without leave.
- The payment was made to the workmen at piece rates after the bidis were delivered to Dewan. The system was that Dewan paid a certain sum for the manufactured bidis, after deducting therefrom the cost of tobacco and the leaves already fixed, to the contractors who in their turn paid to the workmen their wages. Whatever remained after paying the workmen would be contractors’ commission for the work done.
- If the bidis were not rolled, raw materials had to be returned to Dewan and the contractors were forbidden from selling the raw materials to anyone else.
- The manufactured bidis could only be delivered to Dewan who supplied the raw materials. Price of raw materials and finished products fixed by the appellants always remained the same and never fluctuated according to market rate.
- It was held that the contractors were merely branch managers appointed by the management and the relationship of employers and employees subsisted between Dewan and the bidi rollers.
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