§ 116 — Prohibiting order by Commissioner to third party

116.—(1) Whenever the Commissioner has made an order under section 115 against any employer or any person liable for the payment of any sum of money to any workman or subcontractor for labour and after inquiry finds that there exists between that employer or person liable and some other person a contract in the course of the execution of which the workman or subcontractor for labour performed the work in respect of which the order has been made, the Commissioner may summon that other person and may make an order prohibiting that other person from paying to the employer or person liable and requiring that other person to pay to the Commissioner any money (not exceeding the amount found due to the workman or subcontractor for labour) admitted by that other person to be owing to the employer or person liable in respect of the contract.(2) Where that other person admits to the Commissioner in writing that money is owing by that other person under the contract to the employer or person liable, that other person need not be summoned before the Commissioner and the Commissioner may make such order in that other person’s absence.

(3) Where that other person is liable as a principal under section 65 to pay any salary due by the employer or person liable and where the money admitted by that other person to be owing to the employer or person liable is not sufficient to pay the whole of the salary, nothing in this subsection relieves that other person of that other person’s liability for the balance of the salary up to the amount for which that other person is liable under that section.

(4) Any person so summoned is legally bound to attend at the time and place mentioned in the summons and to answer truthfully all questions relating to the contract which the Commissioner may put to that person.

(5) The payment of any money pursuant to an order under subsection (1) is a discharge and payment up to the amount so paid of money due to the employer or person liable under the contract.

—(1) Whenever the Commissioner has made an order under section 115 against any employer or any person liable for the payment of any sum of money to any workman or subcontractor for labour and after inquiry finds that there exists between that employer or person liable and some other person a contract in the course of the execution of which the workman or subcontractor for labour performed the work in respect of which the order has been made, the Commissioner may summon that other person and may make an order prohibiting that other person from paying to the employer or person liable and requiring that other person to pay to the Commissioner any money (not exceeding the amount found due to the workman or subcontractor for labour) admitted by that other person to be owing to the employer or person liable in respect of the contract.

(2) Where that other person admits to the Commissioner in writing that money is owing by that other person under the contract to the employer or person liable, that other person need not be summoned before the Commissioner and the Commissioner may make such order in that other person’s absence.

(3) Where that other person is liable as a principal under section 65 to pay any salary due by the employer or person liable and where the money admitted by that other person to be owing to the employer or person liable is not sufficient to pay the whole of the salary, nothing in this subsection relieves that other person of that other person’s liability for the balance of the salary up to the amount for which that other person is liable under that section.

(4) Any person so summoned is legally bound to attend at the time and place mentioned in the summons and to answer truthfully all questions relating to the contract which the Commissioner may put to that person.

(5) The payment of any money pursuant to an order under subsection (1) is a discharge and payment up to the amount so paid of money due to the employer or person liable under the contract.