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Report No. 199

Section 18" applicability of the Act and exemptions:

In as much as we have introduced new concepts of unfairness, procedural and substantive in sections 5, 6, 9 to 14 it is but necessary to say that the proposed Act shall be prospective in operation in the sense that it will apply only to contracts entered into after the commencement of this Act.

In addition, we have suggested certain exemptions which, in our view, are very much necessary. They are:

(a) contracts and relations between employers and workmen under the labour laws in force;

(b) public employment under the Central Government or a State Government or their instrumentalities or under local authorities;

(c) employment under public sector undertakings of the Central Government or a State Government;

(d) employment under corporations or bodies established by or under statutes made by Parliament or State Legislatures;

(e) contractual terms in respect of which measures are provided in international treaties or agreements with foreign countries to which the Central Government is a signatory.

We recommend accordingly.

Draft Bill is annexed herewith.

Justice M. Jagannadha Rao

R.L. Meena

Dr. D.P. Sharma

Dated: 31st August, 2006

Unfair (Procedural and Substantive) Terms in Contract Back

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