INTRODUCTION
The origin of bonded labour can be traced back to ancient times
whereby, the Hindu society was divided into caste structures. The
lower caste strata did not have sufficient means for their own
sustenance due to which they often depended on higher castes for
their own survival. Due to extreme scarcity of resources on the
part of debtor, he had nothing to offer as security. Thus, the
creditor and debtor entered into an agreement where the debtor
pledged his person and work in lieu of unsatisfied debt.
"There still exists in different parts of the country a
system of usury under which the debtor or his descendants or
dependents have to work for the creditor without reasonable wages
or with no wages in order to extinguish the debt. At times, several
generations work under bondage for the repayment of a paltry sum
which had been taken by some remote ancestor. The interest rates
are exorbitant and such bondage cannot be realized as a result of
any legitimate