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Sub-contracting.
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19.—(1) Subject to the provisions of this section, where any person (in this section referred to as the principal) in the course of or for the purpose of his trade or business, contracts with any other person (in this section referred to as the contractor) for the execution by or under the contractor of the whole or any part of any work undertaken by the principal, the principal shall be liable to pay to any workman employed in the execution of such work any compensation under this Act which he would have been liable to pay if such workman had been immediately employed by him.
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(2) Where, by virtue of the foregoing sub-section, compensation is claimed from or proceedings are taken by a workman against the principal, references in this Act to the employer of such workman shall be construed as references to the principal, except that the amount of compensation shall be calculated with reference to the earnings of the workman under the contractor.
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(3) Where the contract between the principal and the contractor relates to threshing, ploughing or other agricultural work, and the contractor provides and uses machinery driven by mechanical power for the purpose of such work, the contractor alone shall be liable under this Act to pay compensation to any workman employed by him on such work.
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(4) Where the principal is, by virtue of this section, liable to pay compensation to a workman he shall be entitled to be indemnified in respect of such liability by any person who would have been liable to pay such compensation independently of this section and all questions as to the right to and the amount of any such indemnity shall, in default of agreement, be determined by the Court.
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(5) This section shall not operate to prevent a workman recovering compensation under this Act from the contractor instead of the principal
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(6) This section shall not apply in any case where the accident which gave rise to the claim for compensation occurred elsewhere than on, or in, or about premises on which the principal has undertaken to execute the work or which are otherwise under his control or management.
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