Amendment status not verified — confirm the current text below against the official source.
Bonded labour system defined.─ “Bonded labour system" consists in the payment of cash called vallurkavu panam or nilpu panam or by whatever name it may locally be know or the payment in kind, by one person (hereinafter called the creditor) to a person belonging to a Scheduled Tribe (hereinafter called the debtor), whether evidenced by writing or otherwise, on any one or both of the following terms, namely:─ (a) that in consideration of the payment of cash or the payment in kind made by the creditor to the debtor, the debtor shall, by himself or through members of his family, render labour or personal service to the creditor for a specified period, either without wages or on payment of nominal wages; (b) that on failure to render the labour or personal service referred to in clause (a), the debtor shall be bound to repay the cash or the value of the thing received by him and vacate the hut, if any, occupied by him and situated in the land belonging to the creditor. Explanation.─The expression "Scheduled Tribe" shall have the meaning asigned to it in the Constitution of India.