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Section 7 of the Bonded Labour System (Abolition) Act 1976 declares that:

Aevery BONDED LABOURER is FREED and DISCHARGED on the commencement of the Act; bonded debt is extinguished; bondage agreements are void
Bbonded labour is conditionally permitted (cf. Bonded Labour System (Abolition) Act 1976) (cf. Bonded Labour System (Abolition) Act 1976)
Conly future bondage is prohibited (cf. Bonded Labour System (Abolition) Act 1976) (cf. Bonded Labour System (Abolition) Act 1976)
Donly commercial bondage is prohibited (cf. Bonded Labour System (Abolition) Act 1976) (cf. Bonded Labour System (Abolition) Act 1976)
Answer & Solution
Correct answer: A. every BONDED LABOURER is FREED and DISCHARGED on the commencement of the Act; bonded debt is extinguished; bondage agreements are void
1. The Bonded Labour System (Abolition) Act 1976 was enacted to give effect to Article 23 of the Constitution. 2. Section 4: Bonded labour system stands abolished. Every bonded labourer stands freed and discharged. 3. Section 6: Liability to repay bonded debt EXTINGUISHED. 4. Section 7: Property of bonded labourer freed from mortgage/lien. 5. Section 9: Bonded labour offences punishable: imprisonment up to 3 years and fine up to Rs 2,000. 6. Implementation oversight by District Magistrate, Vigilance Committees at District and Sub-Divisional level. 7. Hence option B is correct. _Source: International HR Treaties + Indian Constitutional Jurisprudence — Bonded Labour System (Abolition) Act 1976_
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