law: Workmen's Compensation Act, 1923 
  12. Contracting 
  Where any person (hereinafter in this section referred to as the
  
  principal) in the course of or for the purposes of his trade or business
  
  contract with any other person (hereinafter 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 which is ordinarily part of the trade or business of the
  
  principal the principal shall be liable to pay to any workman employed in the
  
  execution of the work any compensation which he would have been liable to pay
  
  if that workman had been immediately employed by him; and where compensation is
  
  claimed from the principal this Act shall apply as if references to the
  
  principal were substituted for references to the employer except that the
  
  amount of compensation shall be calculated with reference to the wages of the
  
  workman under the employer by whom he is immediately employed. Where the
  
  principal is liable to pay compensation under this section he shall be entitled
  
  to be indemnified by the contractor or any other person from whom the workman
  
  could have recovered compensation and where a contractor who is himself a
  
  principal is liable to a pay compensation or to indemnify a principal under
  
  this section be shall be entitled to be indemnified by any person standing to
  
  him in the relation of a contractor from whom the workman could have recovered
  
  compensation and all questions as to the right to and the amount of any such
  
  indemnity shall in default of agreement be settled by the Commissioner. Nothing
  
  in this section shall be construed as preventing a workman from recovering
  
  compensation from the contractor instead of the principal. This section shall
  
  not apply in any case where the accident occurred elsewhere that on in or about
  
  the premises on which the principal has undertaken or usually undertakes as the
  
  case may be to execute the work or which are otherwise under his control or
  
  management.