Irrespective of the fact whether the contractor was licensed or not it is a fact that one contract worker died in harness during the course of employment, whether he was on roles or not? According to Sec. 12 (1)of E.C.Act, 1923 the principal employer is liable for compensation to the contract worker as if the deceased was immediately engaged by him. However, under Sec. 12(2) the duty cast on the contractor to indemnify the principal employer. Therefore, the liability of the principal employer cannot in any case be ceased until the dependents of the deceased were paid the compensation by the contractor. It is a joint and several liability. Further, any payment paid to the dependents of the deceased not through the Commissioner for employees compensation cannot be considered to be payment of compensation as Sec. 8 of the EC Act bars such payments...kesavapanda@gmail.com.