Factories Act, 1948

The object of the Act is to secure health, safety, welfare, proper working
hours, and other benefits to workers. The Act requires that workers
should work in healthy and sanitary conditions and for that purpose; it
provides that, precaution should be taken for safety of workers and
prevention of accidents.

Applicability of this Act

The Act is applicable to all the factories, defined under Section 2(m) of
the Act and extends to whole of India including Jammu & Kashmir.
Unless otherwise provided it is also applicable to factories belonging to
Central/State Governments. (Section 116).

Important Definitions

Factory
Factory means any premises, including the precincts thereof, in any part
of which manufacturing process is carried on with or without the aid of
power, provided that at least 10 or 20 persons respectively are employed
or were employed on any day of the preceding 12 months.
Essential elements of a factory:
(1) There must be premises.
(2) There must be a manufacturing process which is being carried on or
is so ordinarily carried on in any part of such a premises.
(3) There must be ten or more workers who are/were working in such a
premises on any day of the last 12 months where the said manufacturing
process is carried on with the aid of power. But where the
manufacturing process is carried on without the aid of power, the
required number of workers working should be twenty or more.
The following are not covered by the definition of factory:
(i) Railway running sheds,
(ii) mines,

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(iii) mobile units of armed forces,
(iv) hotels, eating places or restaurants.

Manufacturing Process
Any process for:
• making, altering, repairing, ornamenting, finishing, packing,
oiling, washing, cleaning, breaking up, demolishing, or otherwise,
treating or adopting any article or substance with a view to its use,
sale, transport, delivery or disposal; or
• pumping oil, water or sewage or any other substance; or
• generating, transforming, transmitting power; or
• composing types for printing, printing by letter-press, lithography,
photogravure or other similar process, or book-binding; or
• constructing, reconstructing, repairing, refitting, finishing or
breaking up ships or vessels; or
• preserving or storing any article in cold storage.{ Section 2(k)}
The definition is quite important and it has been the subject of judicial
interpretation in large number of cases.

Case - In Re. Seshadrinatha Sharma

The Madras High Court held that to constitute a manufacture there
should not be essentially some kind of transformation of substance.

Case - Shri Laxmi Dass Premji Ghee Merchant v. Inspector of

Factories Gantur
Where ghee brought from various customers was sampled chemically,
analysed and packed in tins for transportation to the Head Office of the
concern for sale in the market, the court held that manufacturing process
was going in the premises.

Case - Bharati Udyog v. Regional Director ESI Corpn

The cutting of the woods or converting the wood into planks is
essentially a part of the manufacturing activity.

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Case - Employers Association of Northern India v. Secretary for
Labour U.P. Govt.
In the case it was observed that the word ‘ordinarily’ used in the
definition of factory cannot be interpreted in the sense in which it is
used in common parlance. It must be interpreted with reference to the
intention and purposes of the Act. Therefore, seasonal factories or
factories carrying on intermittent manufacturing process, do not cease to
be factories within the meaning of the Act. (eg - Sugar factory to be a
factory when no manufacturing process is carried on during the off-
season).

Premises and Precincts

“Premises” is a generic term meaning open land or land with building
or building alone.
“Precincts” is usually understood as a space enclosed by walls.
Expression ‘premises’ including precincts does not necessarily mean that
the premises must always have precincts. It merely shows that there
may be some premises with precincts and some premises without
precincts.

Case - Ardeshir H. Bhiwandiwala v. State of Bombay

The Supreme Court observed that the legislature had no intention to
discriminate between workers engaged in a manufacturing process in a
building and those engaged in such a process on an open land and held
that the salt works, in which the work done is of conversion of sea water
into crystals of salt, come within the meaning of the word ‘premises’.

Occupier of factory {Section 2(n)}

Occupier of factory means a person who has ultimate control over affairs
of factory.
in the case of a firm or other association of individuals, any one of
the individual partners or members thereof shall be deemed to be
the occupier;
in the case of a company, any one of the directors, shall be deemed

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 to be the occupier;
in the case of a factory owned or controlled by the Central
Government or any State Government, or any local authority, the
person or persons appointed to manage the affairs of the factory
by the Central Government, the State Government or the local
authority, as the case may be, shall be deemed to be the occupier.
in the case of a ship which is being repaired, or on which
maintenance work is being carried out, in a dry dock which is
available for hire; owner of the dock ship or his agent or master or
other officer-in-charge of the ship or any person who contracts
with such owner, agent or master or other officer-in-charge to
carry out the repair or maintenance work shall be deemed to be
occupier.

Case - J.K. Industries Ltd. v. Chief Inspector of Factories

In this case the Supreme Court has held that only a member of Board of
Directors of the Company can be occupier of the factory of the
Company. The ultimate control of factory owned by company vests in
Board of Directors. Ultimate control which vests in Board of Directors
cannot be vested in any one else. Company owing factory cannot
nominate its employees or officers except Director of the company as
occupier of its factory.
Therefore an employee of company or factory cannot be occupier.
The occupier shall ensure, as far as possible health, safety, and welfare of
workers while they are working in a factory. The name of the occupier of
the factory is required to be informed to the Chief Inspector of Factories.
The occupier will be held responsible if the provisions of the Factories
Act, 1948 are not complied with.

General duties of the Occupier {Section 7A}

• Every occupier shall ensure, so far as is reasonably practicable, the
health, safety and welfare of all workers while they are at work in
the factory.
• Without prejudice to the generality of the provisions, the matters
to which such duty extends shall include:

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 The provision and maintenance of plant and systems of work in
the factory that are safe and without risks to health;
the arrangement in the factory for ensuring safety and absence
of risks to health in connection with the use, handling, storage
and transport of articles and substances;
the provisions of such information, instruction, training and
supervision as are necessary to ensure the health and safety of
all workers at work;
the maintenance of all places of work in the factory in a
condition that is safe and without risks to health and provisions
and maintenance of such means of access to, and egress from,
such places as are safe and without such risks;
the provision, maintenance or monitoring of such working
environment in the factory for the workers that is safe, without
risks to health and adequate as regards facilities and
arrangements for their welfare at work.

Notice by occupier {Section 7}

Occupier of a factory shall send a written notice, containing prescribed
particulars, to the Chief Inspector at least 15 days before an occupier
begins to occupy or use a premises as a factory and at least 30 days
before the date of resumption of work in case of seasonal factories, i.e.
factories working for less than 180 days in a year.
A notice must contain following particulars:
(1) The name and situation of the factory.
(2) The name and address of the occupier.
(3) The name and address of the owner of the premises or building
(4) The address at which communication relating to the factory should
be sent.
(5) The nature of manufacturing process to be carried on in the factory
during next 12 months.
(6) The total rated horse power installed or to be installed in the factory
which shall not include the rated horse power of any separate standby
plant.

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(7) The name of the Manager of the factory for the purpose of this Act.
(8) the number of workers likely to be employed in the factory.
(9) Such other particulars as may be prescribed.

Whenever a new manager is appointed, the occupier shall send to the

Inspector a written notice and to the Chief Inspector a copy thereof,
within 7 days from the date on which such person takes over charge.
Where no such person is found the occupier should be deemed to be the
manager of the factory.

General duties of manufacturers etc. {Section 7B}

(a) Ensure, that the article is so designed and constructed as to be safe
and without risks to the health of the workers when properly used;
(b) Carry out such tests and examination as may be considered
necessary for the effective implementation of the provisions of clause (a);
(c) Take such steps as may be necessary to ensure that adequate
information will be available:
(i) In connection with the use of the article in any factory;
(ii) About the use for which it is designed and tested; and
(iii) About any condition necessary to ensure that the article, when
put to such use, will be safe, and without risks to the health of the
workers.
Where an article is designed or manufactured outside India, it shall be
obligatory on the part of the importer to see:
(a) that the article (including plant and machinery) conforms to the same
standards if such article is manufactured in India, or
(b) if the standards adopted in the country outside for the manufacture
of such article is above the standards adopted in India, that the article
conforms to such standards.

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Measures to be taken by factories for health {Chapter III}
(i) Cleanliness {Section 11} - Factory is kept clean.
All the accumulated dirt and refuse on floors, staircases and
passages in the factory shall be removed daily by sweeping or by
any other effective method. Suitable arrangements should also be
made for the disposal of such dirt or refuse.
Once in every week, the floor should be thoroughly cleaned by
washing with disinfectant or by some other effective method.
Effective method of drainage shall be made and maintained for
removing water, to the extent possible, which may collect on the
floor due to some manufacturing process.
White wash or colour wash should be carried at least once in every
period of 14 months.
Where surface has been painted or varnished, repair or revarnish
should be carried out once in every five years, if washable then
once in every period of six months;
Where they are painted or varnished or where they have smooth
impervious surface, it should be cleaned
Once in every period of 14 months by such method as may be
prescribed.
All doors, windows and other framework which are of wooden or
metallic shall be kept painted or varnished at least once in every
period of five years.
The dates on which such processes are carried out shall be entered
in the prescribed register.
If the State Government finds that a particular factory cannot comply
with the above requirements due to its nature of manufacturing process,
it may exempt the factory from the compliance of these provisions and
suggest some alternative method for keeping the factory clean.
(ii) Disposal of waste and effluents (Section 12)
(iii) Ventilation and temperature {Section 13 }
(iv) Dust and fume { Section 14}
(v) Artificial humidification { Section 15}
(vi) Overcrowding {Section 16}

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Minimum working space for each worker as 14.2 cubic metres of space
per worker in every workroom.
For calculating the work area, the space more than 4.2 metres above the
level of the floor, will not be taken into consideration.
(vi) Lighting {Section 17}
(viii) Drinking water {Section 18}
In case where more than 250 workers are ordinarily employed, effective
arrangements should be made for cooling drinking water during hot
weather.
(ix) Latrines and urinals {Section 19}
Separate arrangement shall be made for male and female workers.
Where more than 250 workers are ordinarily employed in a factory the
floors, walls, sanitary pan, etc., of latrines and urinals shall be washed
and cleaned with suitable detergents and/or disinfectants, at least once
in every seven days.
(x) Spittoons {Section 20}

Measures to be taken by factories for Safety {Chapter IV}

Fencing of machinery {Section 21}

Safety measures in case of work on or near machinery in motion
{Section 22}
Employment of young persons on dangerous machines {Section
23}
Striking gear and devices for cutting off power {Section 24}
Self-acting machines {Section 25}
Casing of new machinery {Section 26}
in default shall be liable to punishment with imprisonment
for a term which may extend to 3 months or with fine which
may extend to Rs. 500 or with both.
Prohibition of employment of woman and children near cotton
openers {Section 27}
Hoists and lifts {Section 28}
In every factory:

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 every hoist and lift shall be of good mechanical
construction, sound material and adequate strength. It
shall be properly maintained and thoroughly examined
by a competent persont least once in every period of six
months and a register shall be kept containing the
prescribed particulars of every such examination,
every hoist way and lift way shall be sufficiently
protected by an enclosure fitted with gates and the hoist
or lift and every such enclosure shall be so constructed as
to prevent any person or thing
from being trapped between any part of the hoist or lift
and any fixed structure or moving part,
the maximum safe working load shall be marked on every
hoist or lift and no load greater, than such load shall be
marked on every hoist or lift and no load greater than
such load shall be carried thereon,
the cage of every hoist and lift shall be fitted with a gate
on each side from which access is afforded to a landing
such gates of the hoist and lift shall be fitted with
interlocking or other efficient device to secure that the
gate cannot be opened except when the cage is at the
landing and that the cage cannot be moved unless the
gate is closed.

Lifting machines, chains, ropes and lifting tackles

All parts including the working gear, whether fixed or movable, shall be
(i) of good construction, sound material and adequate strength and free
from defects; (ii) properly maintained; (iii) thoroughly examined by a
competent person at least once in every period of 12 months or at such
intervals as Chief Inspector may specify in writing and a register shall be
kept containing the prescribed particulars of every such examination.

Precautions regarding the use of portable electric light

In any factory (1) no portable electric light or any other electric appliance
of
voltage exceeding 24 volts shall be permitted for use inside any
chamber, tank, vat, pit, pipe, flue or other confined space unless
adequate safety devices are provided; and (2) if any inflammable gas,
fume or dust is likely to be present in such chamber, tank, vat, pit, pipe,

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flue or other confined space unless adequate safety devices are
provided, no lamp or light other than that of flame proof construction
shall be permitted to be used therein.
Precautions in case of fire
Safety of buildings or machinery
Safety officers - where 1,000 or more workers

Measures to be taken by factories for Welfare {Chapter V}

Washing facilities
Facilities for storing and drying clothing
Facilities for sitting
First aid appliances - for every 150 workers
Canteens - wherein more than 250 workers

Case - Kanpur Suraksha Karmachari Union v. Union of India

Employees working in canteens in industrial establishments run
by Managing Committee are not employees of the Managing
Committee, but are employees of occupier.

Case - Tamil Manila Thozilalar Sangam v. Chairman TNEB

Where the statute casts an obligation to own a canteen in the factory,
and the establishment runs a canteen through a contractor who brings
the workers for the canteen would be part and parcel of the
establishment and the canteen workers would be deemed to be regular
employees of the establishment entitled to arrears of salary and other
monetary benefits
Shelters, rest rooms and lunch rooms - more than 150 workers
Creches - more than 30 women workers
Welfare officers - 500 or more workers

Facilities and Conveniences – In summery

• Factory should be kept clean.
• There should be arrangement to dispose of wastes and effluents.
• Ventilation should be adequate.
• Reasonable temperature for comfort of employees should be
maintained.

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 • Dust and fumes should be controlled below permissible limits.
• Artificial humidification should be at prescribed limits.
• Overcrowding should be avoided.
• Adequate lighting, drinking water, toilets, and spittoons should be
provided.

Additional facilities in case of large factories – In Summery

• Ambulance room, if 500 or more workers are employed.
• Canteen, if 250 or more workers are employed.
• Rest rooms/Centers with drinking facility, if 150 or more workers
are employed.
• Creches, if 30 or more women workers are employed.
• Full time Welfare Officer, if 500 or more workers are employed.
• Safety Officer, if 1000 or more workers are employed.

Welfare Measures – In Summery

• All machines should be properly fenced to protect workers when
machinery is in motion.
• Hoist and lifts should be in good condition and tested periodically.
• Pressure Plant should be checked as per the rules.
• Floor, stairs, and means of access should be of sound construction
and free from obstructions.
• Safety appliances for eyes, dangerous dust, gas, fames should be
provided.
• In case of hazardous substances, additional safety measures have
to be taken.
• Adequate firefighting equipment should be available.
• Safety Officer should be appointed if number of workers in factory
is 1000 or more.

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Working Hours
• A worker cannot be employed for more than 9 hours in a day.
• A worker cannot be employed for more than 48 hours in a week.
• At least ½ hour rest should be provided after every 5 hours.
• Total period of work including rest interval cannot be more than
10.5 hours.
• Weekly holiday is compulsory, if the worker is asked to work on
weekly holiday, he should avail the holiday on one of the 3 days
immediately after the normal day of holiday.

Overtime Wages
• If a worker works beyond 9 hours a day and 48 hours a week,
overtime wages are paid at double the rate of normal wages.
• Overtime wages are not payable on tour.
• Total working hours including overtime should not exceed 60
hours in a week.
• Total overtime hours in a quarter should not exceed 50 hours.

Leave
• Worker is entitled in every calendar year annual leave with wages.
• At the rate of day for every 20 days of work performed in the
previous calendar year provided that he had worked for 240 days
or more in the previous calendar year.
• Child worker (who is 14 years and above but less than 15 years) is
entitled to 1 day leave with wages for every 15 days.
• While calculating 240 days earned leave, maternity leave up to 12
weeks and lay off days will be considered but leave shall not be
earned on those days.
• Leave can be accumulated up to 30 days in the case of an adult and
40 days in the case of a child.
• Leave admissible is exclusive of holidays occurring during or at
either end of leave period. Leave cannot be taken for more than 3
times in a year.

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 • Above-mentioned benefits are the minimum benefits. Employer
can of course provide additional or higher benefits.

Employment of Women
• A women worker cannot be employed beyond 6 a.m. to 7 p.m.
• State Government can grant exemption to any factory from such
provisions but in no case a woman can be permitted to work
during 10 p.m. to 5 a.m.
• Shift change can be done only after weekly or other holiday and
not in between.

Young Person and Adult

• "Young Person" means a person who is either a child or an
adolescent.
• Child - A person of 14 years of age but below 15 years of age.
• Adolescent - A person of 15 years of age but below 18 years of age.
• "Adult" means a person who has completed his eighteenth year of
age.

Employment of Children
• Children below 14 years of age cannot be employed.
• A child of age 14 years but below 15 years can be employed for
only 4.5 hours per day.
• He should be certified fit by certifying surgeon.
• He cannot be employed during night from 10 p.m. to 6 a.m.
• A person of 15 years of age but below 18 years of age is termed as
adolescent. He can be employed as an adult if he has certificate of
fitness for a full day’s work from a certifying surgeon.
• An adolescent is not permitted to work between 7 p.m. to 6 a.m.

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Display on Notice Board
A Notice containing an abstract of the Factories Act, 1948 and the rules
made there under in English and local language shall be displayed by
employer.
The name and address of Inspector of factories and Certifying Surgeon
shall also be displayed on the Notice Board.
Punishment to Welfare Officer
No punishment can be imposed on Welfare Officer without prior
sanction of Chief Commissioner of Factories. However, simple order of
termination as per terms of appointment is not punishment and such
termination order is valid.
Case - Arun Kumar Bali v. Government, NCT of Delhi

Powers of Inspectors
• He can enter any place which is used or which, he has reasons to
believe, is used as factory.
• He can make examination of the premises, plant, machinery etc.
• He can require the production of any prescribed register or any
other document relating to the factory.
• Take measurement and photographs and make such recordings as
he considers necessary for the purpose of any examination.

Special Provisions relating to Hazardous Processes

Hazardous Process
"Hazardous process" means any process or activity in relation to an
industry specified in the First Schedule where, unless special care is
taken, raw materials used therein or the intermediate or finished
products, bye products, wastes or effluents thereof would
• cause material impairment to the health of the persons engaged in
or connected therewith; or
• result in the pollution of the general environment;

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Constitution of Site Appraisal Committees
A Committee under the name Site Appraisal Committee shall be
constituted by the State Government to advise the Government in the
matter of examination of applications for establishment of factories
involving hazardous processes. The constitution of the site appraisal
committee consisting of committee has been specified therein.
The Site Appraisal Committee shall examine an application for the
establishment of a factory involving hazardous process and make its
recommendation to the State Government within a period of ninety
days in the prescribed form.

Compulsory disclosure of information by the occupier

It is compulsory on the part of the occupier of every factory involving a
hazardous process to disclose all information regarding dangers,
including health hazards to the workers employed in the factory, the
Chief Inspector, the local authority within whose jurisdiction the factory
is situated and the general public in the vicinity.

Specified responsibility of the occupier in relation to hazardous

processes
Accurate and up-to-date health records or medical records of the
workers of the factory who are exposed to any chemical toxic or any
other harmful substances which are manufactured, stored, handled or
transported and such records shall be maintained by the occupier of a
factory involving any hazardous process.

Inquiry Committee
In the event of occurrence of an extraordinary situation, the Central
Government may appoint an Inquiry Committee to inquire into the
standards of health "and safety observed in the factory with a view to
finding out the causes of any failure or neglect in the adoption of any
measures prescribed for the health and safety of the workers or the
general public.

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Emergency standards: The Director-General of Factory Advice Service
and Labour Institutes may be directed by the Central Government to lay
down emergency standards in respect of hazardous process.

Permissible limits of exposure of chemical and toxic substances: The

Second Schedule added to the Act, indicates maximum permissible
threshold limits of exposure of chemical and toxic substances in
manufacturing processes in any factory.

Workers Participation in safety management: The occupier in every

factory shall set up a safety committee consisting of equal number of
representatives of workers and management to promote co-operation
between the workers and the management in maintaining proper safety
and health at work and to review periodically the measures taken in that
behalf where hazardous process is involved.

Warning about imminent danger: If there is reasonable apprehension

regarding likelihood of imminent danger to the lives or health of the
workers employed in a factory, they may bring the same to the notice of
the occupier, agent, manager, etc.

Penalties and procedures

(1) General penalties for offences: If there is any contravention of any
of the provisions of this Act or any rules or order made there under, the
occupier and manager shall each be guilty of an offence and punishable
with imprisonment for a term which may extend to two years or with
fine which may extend to Rs. one lakh or with both and if the
contravention is continued after conviction, with a further fine of Rs. one
thousand for each, day till contravention continues.
The provisions of Section 92 further provides penalty for contravention
of any of the provisions of Chapter IV or any rule made there under or
under section 87 which has resulted in an accident causing death or
serious bodily injury, the fine shall not be less than 25,000 in the case of
an accident causing death and 5,000 in case of serious bodily injury.
Explanation to this Section defines serious bodily injury, which involves

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the permanent loss of the use of or permanent injury to any limb or sight
or hearing or the fracture of any bone excluding the fracture (not being
fracture of more than one) bone or joint of any phalanges of the hand or
foot.
Section 94 stipulates for enhanced penalty for any person who has
already been convicted under Section 92 of the Act, and is again guilty of
an offence involving contravention of the same provisions. Punishment
for subsequent conviction includes imprisonment for a term which may
extend to three years or with fine which may not be less than 10,000 but
which may extend tp Rs. two lakhs or with both. Provided that the
Court may, for any adequate and special reasons to be mentioned in the
judgement impose a fine of less than 10,000. Provided further, that
where contravention of any of the provisions of Chapter IV or any rule
made thereunder or under Section 87 has resulted in an accident causing
death or serious bodily injury, the fine shall not be less than 35,000 in
case of death and 10,000 in the case of an accident causing serious bodily
injury.
No cognizance shall be taken of any conviction made more than two
years before the commission of the offence for which the person is
subsequently convicted.

(2) Liabilities of owner of premises in certain circumstances:. Section

93 provides that where in any premises separate building are being
leased out by the owner to different occupiers for use as separate
factories, the owner of the premises shall be responsible for the
provision and maintenance of common facilities and services such as
approach roads, drainage, water-supply, lighting and sanitation.
[Section 93(1)]
Where in any premises, independent floors or flats are leased to
different occupiers for use as separate factories, the owner shall be liable
as if he were the manager or occupier of a factory for any contravention
of the provisions of this Act in respect of
• latrines, urinals, washing facilities and common supply of water
for this purpose;
fencing of machinery and plant belonging to the owner and not
entrusted to the custody or use of an occupier
safe means of access to floors or flats and maintenance and

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 cleanliness of staircase and common passages
precautions in case of fire;
maintenance of hoists and lifts; and
maintenance of any other common facilities provided in the
premises. [Section 93(3)]
But the liability of the owner [under Section 93(3) arises only wherein
any premises, independent rooms with common latrine, urinals and
washing facilities are leased to different occupiers for use as separate
factories so that the owner should also comply with the provisions of
maintaining such facilities. (Section 93(5)]
For the purposes of sub-sections (5) and (7) computing the total number
of workers employed, the whole of the premises shall be deemed to be
single factory. [Section 93(3)]
The Chief Inspector has been empowered to issue orders to the owners
in respect of the carrying out of the provisions as mentioned above but
subject to the control of the State Government.

(3)Penalty for obstructing Inspector: Section 95 lays down penalty of

imprisonment for six months or fine of `10,000 or with both for willfully
obstructing an inspector in the exercise of any power conferred on him
by or under this Act or fails to produce any registers or other documents
to him on demand or concealing or preventing any worker from
appearing before or being examined by an Inspector.

(4)Penalty for wrongfully disclosing of results of analysis under

Section 91: Section 96 provides imprisonment extending up to a term of
six months and fine upto `10,000 or both for the wrongful disclosure of
results of analysts of the analysis done under Section 91 of the Act.

(4A) Penalty for contravention of Sections 41B, 41C and 41H: Section
96A provides punishment of 7 yean imprisonment or fine which may
extend to Rs. two lakhs for the non-compliance with or contravention of
any of the provisions of Section 41B, 41C, or 41H or rules made
thereunder by any person. In case the failure or contravention continues,
with additional fine which may extend to five thousand rupees for every

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day during which such failure or contravention continues after the
conviction for the first such failure or contravention. If such failure,
contravention continues beyond a period of one year after the date of
conviction, the offender shall be punishable with imprisonment for a
term which may extend to ten years.

(5) Offences by workers and penalties there for:

(i) Section 97 lays down that if any worker contravenes the provision
of this Act or any rules or orders made there under imposing any
duty or liability on workers he will be punishable with fine which
may extend to 500/-
(ii) Section 98 imposes penalty for using false certificate of fitness.
Such punishment involves imprisonment for such a term which
may not extend to two months or with fine which may extend to
1,000/- or with both.

(6) Penalty for permitting double employment of child by parents or

guardians is stipulated under Section 99. Such an act is punishable with
fine extending up to `1,000 unless it appears to the Court that the child
so worked without consent and connivance of such parents, guardian or
person.

(7) Onus of providing limits of what is practicable etc.: Onus of

proving is on the person who is alleged to have failed to comply with
such duty etc. to prove that he has taken all measures or it was not
reasonable practicable. (Section 104A)

19 PANKAJ KUMAR, FCS, Chartered S I ( CISI ), MBA ( Finance )

Important Cases
• Ardeshir H. Bhiwandiwala v. State of Bombay - The Supreme
Court held that salt manufacture from sea water by employing
different processes is a manufacturing process and the workers
engaged in this work are workers within the meaning of Factories
Act.

• V.P. Gopala Rao v. Public Prosecutor - The Supreme Court held

that Sun cured tobacco leaves subjected to processes of moistening,
stripping, breaking up, packing, with the view to transport them to
Company's main Factory for their use in manufacturing Cigarette
is a manufacturing process under the Factories Act.

• Bharati Udyog v. Regional Director ESI Corpn. - The cutting of

the woods or converting the wood into planks is a part of the
manufacturing activity.

• Lai Mohmd. v. Indian Railway Construction Co. Ltd. -

Construction of railway- use of raw materials like sleepers, bolts,
loose rails etc. to adaptation of their use for ultimately for laying
down railway line amounts to manufacturing process.

• Workmen of Delhi Electric Supply Undertaking v. Management

of DESU - The process undertaken in zonal and sub-stations and
electricity generating stations, transforming and transmitting
electricity generated at the power station does not fall within the
definition of manufacturing process.

• Shankar Balaji Wale v. State of Maharashtra - Piece-rate workers

can be workers within the definition of worker in the Act, but they
must be regular workers and not workers who come and work
according to their will.

20 PANKAJ KUMAR, FCS, Chartered S I ( CISI ), MBA ( Finance )

• Union of India v. G.M. Kokil - All persons employed in or in
connection with a factory whether or not employed as workers are
entitled to the benefits of the Act.

• J.K. Industries Ltd. v. Chief Inspector of Factories - If a factory is

being run by a Company, and then only a director of that
Company can be the occupier for the purposes of the Act.

• Kanpur Suraksha Karamchari Union v. Union of India -

Employees working in canteens in industrial establishments run
by Managing Committee are not employees of the Managing
Committee, but are employees of occupier.

• CCI v. ESIC - Preparation of food and beverages and its sale to

members of a club is a manufacturing process.
• Receiving products in bulk and packing as per clients
requirements amounts to manufacture.

• Shinde v. Bombay Telephones - A person is said to be employed

in the factory if his duties are connected with the business of the
factory, no matter whether he stands outside the factory premises
or inside it.

• Central RIy. Workshop Jhansi v. Vishwanath and others - It was

held that the definition of worker includes those employees who
are entrusted solely with the clerical duties.

• Tamil Manila Thozilalar Sangam v. Chairman - It has been held

where the statute casts an obligation to own a canteen in the
factory, and the establishment runs a canteen through a contractor
who brings the workers for the canteen would be part and parcel
of the establishment, and the canteen workers would be deemed to
be regular employees of the establishment entitled to arrears of
salary and other monetary benefits.

21 PANKAJ KUMAR, FCS, Chartered S I ( CISI ), MBA ( Finance )