As per case facts, MECON Limited, a contractor for SAIL, engaged sub-contractors for project work. MECON argued it wasn't required to obtain a labour licence under the Contract Labour (Regulation ... and Abolition) Act, 1970, as it didn't directly employ 20 or more workers, relying on a past clarification. However, authorities instructed MECON to obtain a licence, stating sub-contractors' existence isn't legal without the main contractor's licence. The question arose whether a main contractor, engaging sub-contractors who employ contract labour, needs a licence under the Act, even if the main contractor itself doesn't directly employ 20+ workers. Finally, the High Court ruled that the petitioner, as the contractor, is liable. The definition of "contractor" includes sub-contractors, and if the total contract labour (direct or via sub-contractors) exceeds 20, the main contractor must obtain a licence. The court dismissed the writ petition, upholding the authorities' stance.