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Section 106: Functions of Building and Construction Welfare Boards

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter VIII: Social Security and Cess for Building Workers
Competent Labour Forum
Act No. 36 of 2020
Section 105 All 163 Sections of Code on Social Security, 2020 Section 107

Legal Commentary & Landmark Judgments: Section 106

Section 106 of the Code on Social Security, 2020 delineates the corporate status, statutory powers, and core operational functions of State Building and Other Construction Workers Welfare Boards, directing them to execute welfare programs and provide social safety nets for construction labor.

  • Body Corporate Status and Perpetual Succession: Establishes every State Building and Other Construction Workers Welfare Board as a body corporate having perpetual succession and a common seal, with power to acquire, hold, and dispose of property, enter into contracts, and sue or be sued in its corporate name.
  • Core Welfare Delivery Functions: Mandates that the Board shall: (a) provide immediate relief to beneficiaries in case of accident; (b) disburse old-age pensions to workers completing sixty years; (c) sanction financial assistance for the marriage of children; (d) frame skill development and safety training schemes; and (e) establish group life and accident insurance schemes with statutory insurance entities.
  • Decentralized Delivery and Digital Welfare Disbursal: Requires the Board to implement electronic Direct Benefit Transfer (DBT) mechanisms to disburse all financial assistance directly into Aadhaar-linked bank accounts, eliminating cash hand-outs and intermediary leakages.
  • Submission of Annual Action Plans and Budgets: Obligates the Board to prepare an annual action plan and budget under Section 115, submitting them for sanction to the State Government alongside statutory performance metrics.
Key Landmark Precedents:
  • Peoples Union for Democratic Rights v. Union of India (1982) 3 SCC 235: The Supreme Court held that state agencies and statutory boards have a positive constitutional obligation to ensure that the labour force employed on construction works receives effective statutory protections without bureaucratic indifference.
  • Bandhua Mukti Morcha v. Union of India (1984) 3 SCC 161: Affirmed that statutory welfare boards must actively reach out to unorganised construction workers to liberate them from economic deprivation and provide social security cushions.
  • National Campaign Committee for Central Legislation on Construction Labour v. Union of India (2018) 5 SCC 218: The Supreme Court mandated that Welfare Boards must maintain digital databases of all registered beneficiaries and conduct regular camps at major construction sites to deliver benefits.
Courtroom Practice & Strategic Litigation Guidance:

Board administrators must integrate their IT infrastructure with the national e-Shram portal and local municipal building permission databases. Conduct automated monthly verification of active beneficiary accounts to disburse accidental death and disability claims within 15 days of filing. Avoid manual token distributions; all disbursements must be executed via PFMS (Public Financial Management System) or DBT platforms to ensure audit compliance.

Section 105 All 163 Sections of Code on Social Security, 2020 Section 107