The Coal Mines Labour Welfare Fund (Repeal) Act, 1986
📘 Background
Before 1986, there was an Act called the Coal Mines Labour Welfare Fund Act, 1947.
Under that Act, a Welfare Fund was created for the benefit of workers employed in coal mines. Money was collected from coal production and used for housing, health, education, sanitation, and other welfare measures of coal miners.
By the mid-1980s, the Government felt that a separate fund was no longer necessary, because welfare schemes were being financed from the general budgetary provisions of the Government of India, and also through other laws such as the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948.
Hence, the Coal Mines Labour Welfare Fund (Repeal) Act, 1986 was enacted to abolish the 1947 Act and wind up its fund.
📜 Objective of the Act
To repeal the Coal Mines Labour Welfare Fund Act, 1947.
To transfer remaining assets, liabilities, and unspent money from the fund to the Consolidated Fund of India.
To ensure that welfare of coal mine workers continues through general welfare schemes and provisions of other labour laws.
📌 Main Provisions of the Act, 1986
Repeal of 1947 Act
The earlier Coal Mines Labour Welfare Fund Act, 1947 stands repealed.
All provisions, rules, and regulations made under it cease to have effect.
Winding up of Fund
The Coal Mines Labour Welfare Fund created under the 1947 Act is dissolved.
Any balance left in the Fund is transferred to the Consolidated Fund of India.
Transfer of Assets & Liabilities
All properties, rights, or assets acquired for coal miners’ welfare are vested in the Central Government.
The Government becomes responsible for any liabilities that existed under the old fund.
Saving Clause
Any action already taken under the 1947 Act (for example, welfare schemes started, benefits granted, or money spent) remains valid.
Workers do not lose their rights just because the Act is repealed.
⚖️ Case Law References
While there are not many direct cases on the Repeal Act of 1986 (because it mainly dealt with abolition of a fund), some cases connected with coal mines labour welfare and related funds are relevant:
Bharat Coking Coal Ltd. v. State of Bihar (1990 AIR SC 1953)
The Supreme Court held that labour welfare is a constitutional obligation under the Directive Principles (Articles 39 and 43).
Even if a specific fund like the 1947 Act is repealed, the State’s responsibility to ensure workers’ welfare continues.
M/s. Beni Ram Mool Chand v. Union of India (1982 AIR SC 1450)
It was observed that cess or levies collected for a welfare fund must be used only for the welfare of the workers.
This principle was kept in mind when the 1986 Repeal Act transferred the remaining money into the general fund for continued welfare schemes.
Workmen of Coal Mines v. Management of Singareni Collieries (1985 AIR SC 1533)
The Court stressed that coal miners belong to a highly vulnerable labour class, and their welfare cannot be ignored, whether through a fund or direct government schemes.
This case justified why even after repeal, welfare responsibility shifted to broader schemes.
📖 Significance of the Repeal Act
The Act did not end welfare of coal mine workers, but instead changed the mechanism from a separate fund to direct government budgetary support.
It simplified administration, as maintaining a separate welfare fund was considered unnecessary.
It ensured that miners’ welfare schemes (housing, health, sanitation, education) would still continue under other welfare legislations.
✅ In short:
The Coal Mines Labour Welfare Fund (Repeal) Act, 1986 abolished the old welfare fund created under the 1947 Act and shifted the responsibility of miners’ welfare directly to the Government of India through budgetary allocations and other labour welfare laws. The repeal did not take away workers’ rights, but only changed the funding mechanism.
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